C237 Taxation I Study Plan Competency 3026.1.1: Federal Taxation – Chapter 1

 Describe the history of taxation in the United States. o Civil war o Reinstated in 1894 o Ruled unconstitutional in 1895 (know why? – “direct tax and not apportioned to state population”) o 16th Amendment  Identify the sources of tax law. o Legislative – Internal Revenue Code, Tax Treaties, Congressional Reports. o Executive – Treasury Regulations (Final, Temporary, Proposed); Revenue Rulings, etc. o Judicial – Supreme Court; Appellate Court; District or Tax Court  Describe the criteria of an equitable tax structure. o Good to structure should have: Equity, Certainty, Simplicity, Economy, & Convenience  Equity – know Vertical Equity & Horizontal Equity  Describe the structure of individual income tax rates. o Know what is progressive, proportional, or regressive and identify some taxes are categorized such category. (See Topic Review I: 1-1)  Calculate an individual’s federal income tax from his or her taxable income. o Know how to use the tax tables, etc.  Distinguish between various types of taxes. o State and Local Income, o Wealth Transfer – Gift and Estate Taxes o Property taxes o Excise tax (e.g. tabaco, airline travel taxes) o Sales tax o Employment FICA, o Unemployment o Franchise taxes  Identify different types of entities that are subject to taxation in the United States. o C Corporation o Individuals o (see Topic Review 1-1)  Describe the administrative procedures of the IRS. o Enforcement Procedures: audits (types of audits) o Statute of Limitations – when 3 years, when 6 years, when never. o Penalties – typ