Tax Test 1

  1. Ad Valorem Taxes
    Property taxes; based on value, these are taxes on wealth or capital.
  2. Realty
    estate or captial improvements that are classified as fixtures
  3. Personalty
    all assets that are not realty
  4. Excise Taxes
    Sin Taxes; taxes on items such as tobbacco products, fuel and gasoline sales and air travel.
  5. Use Tax
    an Ad Valorem tax, usually at the same rate as the sales tax, on the use, consumption, or tangible property purchased outside the state but used in the state.
  6. Severance Taxes
    transaction taxes that are based on the notion that the state has an interest in its natural resources. (eg. oil, iron ore, or coal)
  7. Estate Tax
    a tax imposed on the right to tax property at death
  8. Inheritance Tax
    taxes the right to recieve property from a descendent
  9. Gift Tax
    An excise tax levied on the right to transfer property
  10. Employment Taxes
    specifed amounts witheld, by employers, for income taxes
  11. FICA Tax
    medicare, medicaid and social security taxes
  12. FUTA tax
    state taxes witheld so states can administer unemployment benefits
  13. Franchise Tax
    tax on the right to do business in a certain state
  14. Occupational fees
    deals with licensing and permits
  15. Value Added Tax (VAT)
    proposed tax where businesses pay taxes on all of the materials and services required to manufacture its product
  16. National Sales Tax
    proposed tax where the tax dollars would be collected on the final sale of goods and services
  17. Correspondence Audit
    for minor tax issues by correspondence between the IRS and the taxpayer
  18. Office Audit
    restricted in scope and is conducted in IRS facilities
  19. Field Audit
    involving numerous reported items and is conducted on the premises of the taxpayer or representative
  20. Statute of Limitations
    a provision in the law that offers a party a defense against a suit brought by another party after the expiration of a specified period of time
  21. Revenue Neutrality
    every new tax law that lowers taxes must include a revenue offset that makes up for the loss
  22. Sunset Provision
    when a law expires and the prior law is reinstated
  23. Wherewithal to Pay
    recognizes the inequity of taxing a transaction when the taxpayer lacks the means with which to pay the tax
  24. Proposed Regulations
    proposals from the treasury department that cary very little weight; no more than a position in a brief written by the Tax Court
  25. Finalized Regulations
    have the full force and effect of law
  26. Temporary Regulations
    expires within three years, but carry the same weight as a 'final regulation'
  27. Revenue Rulings
    official pronouncement of the IRS and generally provide one or more example of how the IRS would apply law to specific fact situations
  28. Revenue Procedures
    issued like 'revenue rulings' but deal with the internal management practices and procedures of the IRS
  29. Letter Rulings
    issued for a fee upon a taxpayer's request and describe how the IRS will treat a proposed transaction for tax purposes
  30. Determination Letters
    issued at the request of taxpayers and provide guidance on the application of the tax law
  31. Technical Advice Memoranda (TAM's)
    IRS determination on an issue, issued in response to questions raised by IRS field personel
  32. Court of Orignal Jurisdiction
    (known as trial court) any appeal is then taken to an appellate court
  33. Federal District Court, U.S. Court of Federal Claims, and U.S. Tax Court, Small Cases Division
    taxpayer can choose to have their case heard at any of these four courts
  34. Payment of Deficiency
    if the taxpayer wins in court (assuming no gov appeal) the tax paid plus appropriate interest will be paid
Card Set
Tax Test 1
Income Tax test 1