Suchergebnisse

Annually, the U.S. government collects nearly $3 trillion of income and employment taxes. With respect to these collections, Form 1040 (U.S. Individual Income Tax Return) seeks to ensure taxpayer accuracy. Currently, two sets of players dominate the Form 1040 preparation and submission process: tax return preparers and tax return preparation software companies. The former guides taxpayers through the entire tax return preparation and submission process, and the latter provides taxpayers with the necessary tools to complete and submit tax returns themselves. Tax return preparers and tax software companies thus stand as vital intermediaries between the government and taxpayers. Despite the key role that tax return submission plays in government function, Congress exercises virtually no oversight over the process. Currently, regardless of education, knowledge, or experience, any person can prepare tax returns for compensation; similarly, almost no checks exist to ensure the substantive accuracy of tax returns prepared with tax software. As a result of these shortcomings, taxpayers file millions of flawed tax returns each year. Faulty returns shortchange the government of necessary revenue, deprive some taxpayers of crucial government benefits, and leave others liable for back taxes and penalties. This Article is the first to propose comprehensive tax return preparation process reform. It urges Congress to regulate both tax return preparers and tax preparation software companies. Adoption of one or more of the proposed reforms should lead to more accurate tax returns, protect taxpayers, and ensure a fairer and more efficient tax system.

The accuracy of a tax return is usually interpreted as an outcome of the tax evasion decision by an individual. However, in non-democratic regimes with predatory blackmail tax systems it is possible that large sums voluntarily reported by influential politicians or businessmen may be used as political statements. By openly acknowledging one's personal income an individual can signal the strength of one's position, or, on the contrary, the submissiveness to the political leadership. In this paper we explore the idea of the tax return as a political statement and test it using a unique dataset of the tax returns filed by the Russian regional governors and the members of their families for the year 2009. Our results conjecture that Russian governors may deliberately file their tax return as a political statement to signal their strength vis-à-vis the central government.

The most effective system available to prepare for the new Tax Return Preparer Competency Exam In recent years, the role of third party assistance in tax return preparation within the United States has become more significant. To acknowledge this trend, the IRS is strengthening partnerships with tax practitioners, tax return preparers, and other third parties in order to ensure effective tax administration that adheres to professional standards and follows the law. Beginning in 2011, tax return preparers are required to pass a competency test to officially become registered tax return preparer