ACT 330 Lecture Notes - Lecture 2: Internal Revenue Code, Revenue Ruling, Real Estate Transfer Tax
Document Summary
Act 330 (tax accounting)- chapter 1: taxes and taxing jurisdiction. Tax: payment to support the cost of government. Different from penalty or fine because it isn"t meant to punish people: mandatory not voluntary. Taxpayer: person or org required to pay tax to the government, two types: Incidence of tax: entire economic burden in tax, many assume the incidence is just on the individual or corporation taxpayer. Jurisdiction: right to levy tax on person. In united states, right to tax citizens and permanent residents. Example: if bob is a us citizen, but lives in france, us has right to collect taxes on all of his income. Also can claim jurisdiction with people who aren"t a citizen or resident but earn income in us. Example: person lives in paris, owns interest in business within a state. Us can claim tax on that person"s income within the states.
