ACIS 3314 Lecture Notes - Lecture 1: San Francisco Municipal Railway, Punitive Damages, Taxable Income

• School: Virginia Tech
• Department: Accounting and Information Systems
• Course: ACIS 3314
• Professor: Neil S.Johnson

Document Summary

Graduated tax-progressive (fed income tax inc marginal as inc base), regressive(ss) Marginal: next additional increment, % on schedule, or change in tax/change in taxable income. Most fed tax revenue from indiv income tax, most state and local from property. Implicit taxes=returns after tax, after tax return= pretax rate of return * (1-marginal) Indiv taxes- april 15, corporations-- 15th day of 3rd month of fy end. Statute of limitations: 3 years of later of 1) actual file date or 2) original due date. Irs selection for audit: less than 2% audited, high dif score (self-employed, high income, many deductions), document perfection (check math), info matching programs. Types of audit: correspondence-common, by mail office- in irs office field-uncommon, broadest. Trial levels: us tax court (if cant pay, tax experts), us district (jury), federal claims (generalists) Timing--- accelerate deductions, defer income if rate is constant or decreasing!! Only multiply x after tax ror for the future option, use pv formula.