Tough Times for the IRS

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Income Taxes, Intermediate Accounting, International Accounting, Managerial Accounting, Video Updates.

Audits and criminal referrals are down sharply by the IRS since Congress cut the tax agency’s budget and management changed priorities. Questions: 1. How many cases did the IRS’s criminal division bring last year? 2. How many cases did the IRS’s criminal division bring in 2010? 3. According to the IRS’s estimates, how much in… Read more »

Seattle’s Creative Accounting

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According to The Week, a nine-person panel unanimously approved a new $275-per-employee tax on big companies (like Amazon) in Seattle, in order to raise about $48 million annually for homeless services. Questions: 1. In Seattle, how much has the number of people sleeping on the street grown by over the period from 2015to 2017? 2…. Read more »

Trickle Down Tax Cuts from 2017

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Berkshire recorded a hefty windfall from the tax bill that Congress passed at the end of last year. Questions: 1. According to the article, the 2017 tax cut was 2/3 of Berkshire Hathaway’s 2017 Earnings. How much were the earnings and how much (in dollars) was the tax cut? 2. In the past, how did… Read more »

Driving a Car in Manhattan may get pricey!

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Under a major proposal prepared for Gov. Andrew M. Cuomo, driving a car into the most congested parts of Manhattan under the new pay-to-drive plan would cost about $11.52. Questions: 1. What are the two goals of the plan? 2. What will trucks and taxis pay? 3. Who originally promoted the plan? 4. How much… Read more »

Devastating Blow to Graduate Researchers

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According to the New York TImes, Republicans in the House of Representatives have just passed a tax bill that would devastate graduate research in the United States. Questions: 1. What would be the result if universities try to cover the tuition that will now be taxed for graduate students? 2. How does the American public… Read more »

What would you do?

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According to the Washington Post, the residents of Presidio Terrace, which is an oval-shaped privately owned street commonly known as one of the most exclusive communities in San Francisco, learned the that someone could buy their entire street. Questions: 1. Why was it possible to own Presidio Terrace? 2. How many bidders did Ms. Lam… Read more »

From White House to the Big House?

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It was only a week ago that President Donald Trump was praising Caterpillar Co. for producing such great bulldozers, as he met with company Chairman Doug Oberhelman at the White House. Less than a week later, officials from the Commerce Department, Internal Revenue Service, Federal Deposit Insurance Corp. and Illinois State Police moved in and… Read more »

Apple and Taxing Issues!

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This week, the European Union (E.U.) ordered Ireland to collect $14.5 billion in unpaid taxes from Apple. According to Margrethe Vestager, the European Union’s commissioner for competition, Apple’s illegal deals with the Irish government allowed the company to funnel profit from two Irish subsidiaries to a “head office” with “no employees, no premises, no real… Read more »

I’ll have a Double Irish, Dutch Sandwich to go please

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In a remarkable tax maneuver, Google moved 10.7 billion euros (or $12 billion) through the Netherlands to Bermuda in 2014. As a result of this structuring, Google will earn most of its foreign income tax-free. Questions: 1. What is this tax strategy called and why? Why Bermuda? 2. Why has corporate tax avoidance risen to… Read more »

Her Majesty’s Revenue and Customs said it enforces tax rules impartially—regardless of a company’s size.

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Google has agreed to pay 130 million pounds (or about $185 million) in a tax settlement to U.K. authorities, where the British Labour Party criticizes the government’s handling of the case and the normal use of corporate tax strategy workarounds. Questions: 1. How far back in time does the settlement go to cover back taxes?… Read more »