Federal Tax Returns Research Articles

THE COMPLIANCE COST OF THE U.S. INDIVIDUAL INCOME TAX SYSTEM

This paper uses evidence from a survey of Minnesota taxpayers to estimate the magnitude and demographic patterns of the compliance cost of filing federal and state income tax returns. It concludes that in 1982 this cost was between $17 and $27 billion, or from five to seven percent of the revenue raised by the federal and state income tax systems combined. About two billion hours of taxpayer time were spent on filing tax returns, and about $3 billion was spent on professional tax assistance.

The Supreme Court's Misconstruction of a Procedural Statute: A Critique of the Court's Decision in Badaracco

When a taxpayer files an honest' federal income tax return for a taxable year, section 6501(a) of the Internal Revenue Code2 limits the period of time during which the Government can assess a tax for that year to a three-year period commencing with the date that the return was filed. The three-year limitations period is extended for an additional three years by section 6501(e)(l)(A) if the taxpayer's return omits properly includible gross income in an amount in excess of twenty-five percent of the gross income that was reported. If a taxpayer fails to file a return for a taxable year or files a fraudulent return, sections 6501(c)(l) and (c)(3) permit the tax for that year to be assessed at any time; in other words, there is no limitation on the time available to the Government to assess or collect the tax.

Measuring Interstate Migration Flows: An Origin—Destination Network Based on Internal Revenue Service Records

"This paper examines gross interstate migration flows for five periods for the years between 1969 and 1978. The analysis is based upon a newly available data source--Federal income tax returns. Approximately 90% of the US population is covered by this data series. The matching of Internal Revenue Service (IRS) returns between filing dates enables the determination both of the origin and of the destination of migrants, with few of the risks of geographic miscoding present. "These data illustrate that despite divergent economic fluctuations over the past nine years, the patterns of interstate migration have remained virtually unchanged. With few exceptions, the number of migrants either leaving or entering a particular state comprise identical proportions over time.... In addition, these data offer considerable evidence that current residence has a significant impact on the selection of a destination." Comparisons are made with data from the Current Work History Sample and the 1970 census.

THE CONCENTRATION OF PERSONAL WEALTH IN AMERICA, 1969

This essay focuses on the problems of estimating the share of America's personal wealth in the hands of affluent individuals by a technique known as the estate multiplier method. Rather than exploring these problems in an empirical vacuum, we first present some results from the most recent estimates of the distribution of U.S. personal wealth.1 The estimates—for the year 1969—are then used as a basis for gauging the sensitivity of estate multiplier estimates to variations in approach.Section I presents new empirical findings dealing with the asset holdings of top wealth‐holders and the super rich, and with the shares of specific assets owned by them. Also presented is information about the sex and marital status of the super rich.Section II discusses various technical aspects of the estate multiplier as applied to federal estate tax returns. The main concern is with the weighting process, but attention is paid to the fact that estate tax returns filed in a given year are not for decedents who died in that year or any single year, and to the problems of adjusting the face value of life insurance to cash surrender value.

The Share of Top Wealth-Holders in National Wealth, 1922-1956

Based largely upon data derived from federal estate tax returns, this report investigates the distribution of wealth in the United States in the years 1922-56, and finds important changes in the degree of economic inequality. More than 100 tables and 37 charts illustrate the author's findings.

Corporations. Affiliated Corporations. Agreement Allocating Overwhelming Share of Tax Savings from Consolidated Federal Income Tax Return to Parent Is Set Aside as Unfair. Case v. New York Cent. R. R. (N. Y. App. Div. 1963)

Corporations. Affiliated Corporations. Agreement Allocating Overwhelming Share of Tax Savings from Consolidated Federal Income Tax Return to Parent Is Set Aside as Unfair. Case v. New York Cent. R. R. (N. Y. App. Div. 1963)

The Share of Top Wealth-Holders in National Wealth, 1922-1956.

Based largely upon data derived from federal estate tax returns, this report investigates the distribution of wealth in the United States in the years 1922-56, and finds important changes in the degree of economic inequality. More than 100 tables and 37 charts illustrate the author's findings.

Comparative Net Yields on Stocks and Municipal Bonds

AS TAX-EXEMPT YIELDS ON MUNICIPAL BONDS reach new highs for the past twenty years and more, it becomes tempting to draw historical comparisons between such yields and those available after income tax from industrial common stocks. Any such comparison must recognize the limitation to its value, resulting from the different motives normally involved. We need not adopt the extreme attitude that nobody buys common stocks for yield anymore to concede that yield frequently is not the primary objective in equity buying. The type of comparison mentioned above is subject to both quantitative and qualitative problems and limitations. Quantitatively, we have ( 1 ) varying rates of taxation over the years, (2) the marital split in Federal income tax returns, starting in 1948 and (3) a rising trend of incomes over a period of years, for which correction is virtually impossible: Qualitatively, we have the problem that a yield on fixedincome securities is relatively firm, as compared with a yield on a variable-income security. The latter may be based on rates of dividend payments possibly ranging from an abnormally high and unsustainable level, to an equally depressed one. Further, the popularity in recent years, of comrmon stocks as constituting a hedge against commodity price inflation, militates against general acceptance of current stock yields as representative of future income from equities. Even without this inflation-hedge doctrine, the history of long-term growth of dividend-income and of stock prices could justify some disregard of low stock yields. The long-term rise in surtax rates, which has tended to increase the relative attractiveness of tax exempt bond yields, has also induced, especially among high-surtax-bracket investors, a greater emphasis on long-term capital gains on stocks, and a de-emphasis on current dividend return. Various causes of non-comparability cited above have existed in greater or less measure since the adoption of the Sixteenth or income tax amendment to the Constitution. And the fact remains that common stocks and tax-exempt bonds are alternative sources of income. An historical comparison between them affords a basis for judging the magnitude of the sacrifice if any, in income return which the market has been willing in the past, and is currently willing to accept, to obtain the growth in dividends and common stock prices.

U.S. Nurses at Work Abroad

2. Interpret employment standards and recommended principles to nurses and employers, making supporting information available to them. 3. Through state economic security programs, assist nurses in particular agencies to negotiate for sound transportation provisions. 4. Survey the transportation problems of members where this is necessary and feasible, including transportation costs and reimbursement plans used in the state. 6. Provide information to nurses on how to report transportation costs on federal income tax returns.

THE PEDIATRICIAN AND THE PUBLIC

I am moved to write you because I believe it is important that the facts I am going to relate be generally known to pediatricians. Sooner or later every mentally retarded child comes to the attention of a physician. The cost of care for these children, particularly the burden of expense involved in their supervision at "schools" n a part- or full-time basis, is a permissible deduction as medical expense on Federal Income Tax returns. The propriety of this deduction is not generally known either to physicians or the parents of their patients. The pertinent language of the Internal Revenue code bearing on this problem is as follows: "Sec. 23 (x). The term `medical care,' as used in this subsection, shall include amounts paid for the diagnosis, cure, mitigation, treatment or prevention of disease, or for the purpose of affecting any structure or function of the body (including amounts paid for accident or health insurance.) "Reg. 111, Sec. 29.23 (x)-1. Allowable deductions under section 23 (x) will be confined strictly to expenses incurred primarily for the prevention or alleviation of physical or mental defect or illness." With a thorough understanding of the likely areas of difficulty in interpretation of the term, "medical care," by non-medical persons, the following letter was sent to the local Collector of Internal Revenue by the president of the board of a local private school for exceptional children.

Tax Time Again

ONCE again the time draws near to square accounts with Uncle Sam. March I5 is the last day for filing your 1947 federal income tax return. If you are entitled to a tax refund, that is the time to claim it; if a portion of your tax remains unpaid after taking credit for all amounts withheld or instalments previously paid, this unpaid balance must accompany your return, unless you file on the short form as later explained. Inasmuch as nearly a year has passed since you last worried about What form do I use?-Is this item taxable?-and Is this a good deduction?-you may need to be briefed on the more common problems you are likely to encounter. If your income in I947 was $500 or more you are required to file a return. Note the use of the term gross income. Nontaxable receipts such as dividends on mutual insurance company policies, payments or allowances to veterans under the G.I. Bill, maintenance received from your employer when required for the proper performance of your duties (more about this later), income earned by any dependents, et cetera, are not to be taken into consideration in computing your gross income. Here is something to keep in mind-it may mean a refund to you. If your income for I947 was less than $500, you are entitled to receive a refund of all income tax withheld from your earnings. To receive this refund you must file a return.

Renegotiation and Federal Taxation

The solution of the problems arising in coordinating renegotiation with the Internal Revenue Code has been accomplished through a process of development. As originally enacted, the renegotiation statute' which became effective April 28, I942, did not state expressly the effect of the elimination of excessive profits upon income for the taxable year affected. The Statute, however, provided that, although the purpose of renegotiation was to eliminate excessive profits, nevertheless, this purpose was to be achieved through revision of price by renegotiation.2 At the outset, the situation was clear where excessive profits were eliminated through price reductions upon future deliveries or future performance. It also seemed clear that even though excessive profits were eliminated by retroactive price reductions resulting in a refund, if the obligation to make the refund was fixed or if the refund was paid within the taxable year in which the delivery or performance took place, then income for that taxable year was reduced.3 If, however, the renegotiation took place after the fiscal year of the contractor in which delivery or performance took place and for which year the Federal income and excess profits tax returns had been filed, questions arose concerning the taxable year in which the adjustment should be reflected. It was puzzling, too, whether the answer to this question would vary, depending upon a number of circumstances. Some of those circumstances were whether the contract had been entered into prior to the effective date of the Act, whether the deliveries with respect to which the prices were retroactively reduced had been made prior to that date, and whether the contract contained a renegotiation clause inserted pursuant to the directions contained in subsection (b) of the Renegotiation Statute. If it were determined that the retroactive price adjustment affected income for a prior fiscal year, for which a Federal tax return had been filed, must the contractor make his renegotiation refund in full through the renegotiation agency and file a claim for a refund with the Bureau of Internal Revenue, or should the Federal taxes paid with respect

Taxation. Accrual of Real Property Taxes. Deduction of Property Taxes by Purchaser in Federal Income Tax Return

Taxation. Accrual of Real Property Taxes. Deduction of Property Taxes by Purchaser in Federal Income Tax Return

Regional Diversity of Income Distribution

A survey of pertinent statistics compiled from federal income-tax returns indicates that although differences in sex and family status of the taxpayers, reflecting industrial and occupational differences among the states, may partly account for the regional diversity of income distribution, and although such factors as climate and race undoubtedly have influence, a dominant factor is the regional dissimilarity in the structure or source of the income. States having economic and social structures founded largely upon agriculture, mining, or other basic industries show generally low concentration and small inequality; while those states, mainly east of the Mississippi and north of the Potomac, in which income from ownership of and dealings in property is most important, show sharp inequality of distribution and large concentration in high income.

The Distribution of Corporate Ownership in the United States

An important movement, in need of quantitative measurement, 16. — Federal income-tax returns indicate a wider distribution of dividend payments, 17. — Corroborative evidence furnished by a study of stock ownership in 281 corporations, 21. — An estimate of total capital stock of American corporations and of the number of domestic stockholders, 26. — Two periods of rapid diffusion, 29. — Stock ownership by employees, 32. — By customers, 32. — Labor banks, 33. — Tax-exempt securities, 35. — Effect of Liberty Bond campaigns, 35. — Increase of savings deposits, 36. — Effect of higher wages, 37. — Conclusion, 38.

FEDERAL INCOME TAX RETURNS

Medical Journal of AustraliaVolume 2, Issue 4 p. 98-99 Leading Article FEDERAL INCOME TAX RETURNS First published: 01 July 1922 https://doi.org/10.5694/j.1326-5377.1922.tb61148.xAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat No abstract is available for this article. Volume2, Issue4July 1922Pages 98-99 RelatedInformation

FEDERAL INCOME TAX RETURNS

Medical Journal of AustraliaVolume 2, Issue 3 p. 49-49 Federal Income Tax Returns FEDERAL INCOME TAX RETURNS First published: 01 July 1921 https://doi.org/10.5694/j.1326-5377.1921.tb48205.xAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat No abstract is available for this article. Volume2, Issue3July 1921Pages 49-49 RelatedInformation

FEDERAL INCOME TAX RETURNS

Medical Journal of AustraliaVolume 2, Issue 3 p. 56-56 Review FEDERAL INCOME TAX RETURNS First published: 01 July 1920 https://doi.org/10.5694/j.1326-5377.1920.tb61415.xAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat No abstract is available for this article. Volume2, Issue3July 1920Pages 56-56 RelatedInformation