Tax Issues Identifying Project:ACCT 3350:Spring 2017

Choose a movie clip (youtube clips) from the list below.Your goal is to identify federal tax issues and how the tax law should be applied.Also, if relevant, discuss how the actions of the character involved would be altered if significantly influenced by the tax factors.Dont try to do this project based on your recollection of the movie: you will overlook possible tax issues that way.The write up should be no longer than 5 double spaced pages (and no fewer than 3).Your grade will reflect how well you identified the issues, how deeply you discussed them, how well you resolved them.The grade will also factor in your writing.

The paper should be organized by identifying the tax issue, how it is dealt with in the movie and what the tax consequences are to the character.Identify the relevant Code sections and/ or the tax concepts (ch 2) using the text book and any other sources (list the sources).

Analyze the scene for the following issues

General Concepts

Ability-to-Pay Concept states that a tax should be based on the amount that the taxpayer can afford to pay, relative to other taxpayers

Administrative Convenience Concept states that items may be omitted from the tax base whenever the cost of compliance would exceed the revenue generated; the cost is generally the time and effort for taxpayers to accumulate the information necessary to implement the concept

Arms-Length Transaction Concept states that all parties to the transaction have bargained good faith and for their individual benefit, not for the benefit of the transaction group

Pay-As-You-Go Concept states that a tax should be collected as close as possible to the time in which income is earned

Accounting Concepts

Entity Concept states that all items of income, deductions, and so on are traced to the tax unit responsible for the item

-Assignment-of-Income Doctrine states that the tax entity that owns the income produced is responsible for the tax on the income, regardless of what entity actually receives the income

Annual Accounting Period Concept states that all entities must report the results of their operations on an annual basis; each tax year stands on its own, apart from other tax years

-Tax Benefit Rule states that any deduction taken in a prior year that is recovered in a subsequent year is reported as an income in the year it is recovered, to the extent that a tax benefit is received from the deduction

-Substance-Over-From Doctrine states that transactions are to be taxed according to their true intention rather than some form that may be contrived

Income Concepts

All-Inclusive Income Concept states that all income received is taxable unless some specific provision can be found in the tax law that excludes the items in question from taxation or defers its recognition to a future tax year

Legislative Grace Concept states that any tax relief provided to taxpayers is the result of a specific act of Congress that must be strictly applied and interpreted

Capital Recovery Concept states that no income is realized until the taxpayer received more than the amount invested to produce the income

Realization Concept states that no income or loss is recognized for tax purposes until it has been realized by the taxpayer; realization occurs when a transaction takes place that involves a change in the form and/or substance of a taxpayers property rights

-Claim-of-Right Doctrine states that a realization occurs whenever an amount is received without restriction as to its disposition; an item is received without restriction when the receiver has no definitive obligation to repay the amount received

-Constructive Receipt Doctrine states that cash basis taxpayers are deemed to be in receipt of income when it is credited to their accounts or otherwise made unconditionally available to them

Wherewithal-to-Pay Concept states that income is recognized in the period in which the taxpayer has the means to pay the tax on the income

Business Purpose Concept states that in order for an item to be deductible an expenditure or loss must have a business or economic purpose that exceeds any tax avoidance motive

I have selected

Austin Powers: 100 Billion dollar scene.

https://www.youtube.com/watch?v=jTmXHvGZiSY

Tax Research Movie paper outline

First Section:

Facts:List all of the relevant facts from the scene.You may need to get some back ground information about the characters and you can do so from a number of websites that summarizes the whole movie.Focus on the actual scene.

Second Section:

Issues:In sentence form:list all of the tax issues that arise from the scene.Each issue should be identified in one or two sentences.

Third Section:

Analysis of the law:take one of the tax issues from above and analysis the law.Use the book as a starting point and cite the IRC and other sources.

Fourth Section:

Conclusion:short summary of the analysis and your conclusion about the taxability of the issue found in Section Two.

DUE DATE: April 11, 2017