Introduction
Congress created the Internal Revenue Service (IRS) in 1862 mainly to administer and to enforce internal revenue laws and related statutes. The purpose of the IRS is to help taxpayers understand tax law and to be responsible for their tax obligations. In 2000, it processed 226 returns and collected $2 trillion tax dollars. The cost is 39 cents for each $100 collected.
The President appoints the chief executive of the IRS, the Commissioner. Then, the Senate approved the appointment. The Commissioner has a five-year tenure and oversees all operation of the IRS, including “processing of tax returns, the collection of taxes, enforcing tax laws, and interpreting tax laws written by Congress.”
The IRS has four operating
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In drafting the response or getting ready for the appointment, the taxpayer should examine very carefully the issues stated in the contact letter. The taxpayer should also plan an audit defense and to determine whether the issues are localized in one year or potentially broaden to other years.
Tax Authorities and References
Generally, there are two types of tax authority: primary and secondary. Statute, administrative regulations, and case law are the highest level of authority in tax. Secondary authority consists of Federal Tax Coordinator, US Tax Reporter, Tax Journals, and Newsletters. “For administrative law, the court examines under Chrevron and Skidmore/Mead deference. “Under the Chevron two-part framework, a court first asks whether Congress has “directly addressed the precise issue at question,” i.e., is the statute clear, or is it ambiguous or silent. Under the second part, a court examines whether the regulation is a permissible interpretation of the statutory text.” “The earlier Skidmore doctrine was reaffirmed in in Mead case where the court considers whether administrative agency 's interpretative rules deserve deference according to their persuasiveness.”
Private Letter Ruling
A Private letter ruling is “[a] written statement issued to the taxpayer by the Internal Revenue Service in which interpretations of the tax law are made and
Pursuant to section 7801, the Secretary of Treasury (again Notice they do not define secretary) has full authority to administer and enforce the internal revenue laws and has the power to create an agency to enforce such laws. Based upon this, the Internal Revenue Service was created. Thus, the Internal Revenue Service is a body established by "positive law" because it was created through a congressionally mandated power. Moreover, section 7803(a) explicitly provides that there shall be a Commissioner of Internal Revenue who shall administer and supervise the execution and application of the internal
The power of the executive branch is vested by the President of the United States. This branch is the largest branch that operates with assistance from the Vice President, agencies and members to successfully lead the government. The executive branch mainly operates based on the responsibilities and duties of the President implementing and forcing laws written by Congress (Whitehouse.gov). However, the interactions that the executive branch has with the other branches productively endorse power. The interactions that the executive branch has with the legislative branch are carrying out and enforce the laws that
The IRS has a long history of enforcing various form of taxes and a variety of regulation in the United States of America. In fact, federal agencies such as the Bureau of Alcohol, Tobacco and Firearms began as part of the IRS before separation onto its own agency. Below is a brief timeline of the origins of the IRS and subsequent events that transformed it into the agency it is today:
agencies today are increasingly reliant on the third type of rulemaking due to both the cumbersome nature of the formal rulemaking process and the ease with which information can be disseminated to the public through the Internet. Generally, there are two categories of deference that courts grant an administrative agency’s interpretation of law, depending on the categorization of the administrative action in question. If agency action amounts to formal rulemaking, it is analyzed using a two-part test established in Chevron U.S.A., Inc. v. Natural Res. Def. Council, Inc. If the agency action does not constitute formal rulemaking, courts use the factors established in Skidmore v. Swift & Co. to determine if deference should be granted.
2. The complaint is frequently heard that the IRS appears to operate as if there were no restrictions upon its authority to investigate and harass taxpayers. Discuss what controls Congress, the courts, and the executive branch exert over the IRS and its administration of the tax law.
The President must enforce laws, appoint the Cabinet members and those who are the heads of government agencies.
The U.S. Immigration and Customs Enforcement (ICE) agency is the largest and pri- mary investigative arm of the U.S. DHS.46 ICE is responsible for identifying and inves- tigating weaknesses within the nation’s borders, developing intelligence concerning threats, removing foreign nationals, and enforcing over 400 federal statutes. The agency was formed in 2003 as part of the Homeland Security Act and is the result of a merger of several federal agencies, including the Customs Service, Immigration and Natural- ization, and the Federal Protective Service. ICE has approximately 15,000 employees in 400 offices in the United States and 50 offices around the world.47 The ICE agency plays a pivotal role in enforcing Internet-related crimes because
CHIEF EXECUTIVE - Under the Constitution, the President is the Chief Executive of the United States and runs our government. He makes sure that laws are enforced, appoints important officials, grants reprieves and pardons, issues Executive Orders, and coordinates the efforts of over 150 departments and agencies. He does not do all of it, he has help form his Cabinet of 13 department heads and the White House Executive Office Staff.
In preparing or signing a return, a member may trust the information furnished by the taxpayer or by third party. Nevertheless, tax preparers cannot ignore the information to be incorrect, incomplete or inconsistent. Further, tax preparer should certain the tax returns related information and consider any confidential limitation that imposed by any laws or rules. Even though there is no need for a member to exam the supporting data, the member is required to encourage the taxpayer to provide correct supporting data. Besides, a member should use a taxpayer’s returns for one or more prior years in preparing the current year tax return whenever
Under Article II of the Constitution, the President is responsible for the execution and enforcement of the laws created by Congress. Fifteen executive departments — each led by an appointed member of the President's Cabinet â carry out the day-to-day administration of the federal government.
Received fiscal request from T. Hill, which was signed to lead worker L. Purnell & Fiscal supervisor D. Columna, regarding receipt #1477194. This request was not clear as to what the worker wanted fiscal to do with this receipt. Fiscal asked Purnell for clarification, fiscal still did not get satisfied answers to questions that were asked. Fiscal request was given to supervisor Columna, she stated Cindy Shockey, had instructed her as to why this receipt as to be applied to case
While the IRS allows investment transactions to be treated as income or loss generators by some active traders, fund managers don’t have the same flexibility when it comes to treating assets as long-term capital gains, according to the Salt Lake City, UT-based professional hedge fund firm Capital Fund Law Group. This is the case when the transactions are recognized as ordinary income.
The Stakeholders are individuals or groups, inside or outside of the organization, encouraging, directly or ramblingly of the success of the team (Palmer, Dunford, & Akin, 2009, p.146). Charles Rossotti took leadership at the Internal Revenue Service (IRS) in 1997 as commissioner to amid complaints of abuse of workers and taxpayers (Riccucci, Rainey, & Thompson, 2006, p.596). Rossotti supervised the establishments and the stakeholders of IRS. The primary stakeholders in the transformation of the IRS are the internal stakeholders meaning the employees such as the tax preparators. In additional the external stakeholders are the customers identified as the taxpayers. Rossotti’s determination was to show to the Congress that the employees and the
The ratification of the sixteenth amendment to the constitution established the federal income tax. The federal income tax is a tax the United States government collects on the wages and income an individual may earn in a year. Each year federal income taxes are collected from millions of Americans based on a progressive taxing formula. The progressive structure of the formula is designed to ensure that each individual no matter their income, pays what is considered a fair taxation rate. If an individual earns more, more taxes are levied against the earned wages and income.
The secretaries, or chief administrators, of the major departments of the federal government. Cabinet secretaries are appointed by the president with the consent of the Senate. (See page 263)