How payments of kens and harolds medical insurance are treat

Assignment Help Taxation
Reference no: EM131329057


Tom, an executive for a large corporation, enjoys the challenge of preparing his tax return. He is aggressive in preparing his return and searches through all the available publications to reduce his tax liability. In all the years Tom has completed his return, he has never been audited. However, in preparing his 2012 tax return, Tom misinterpreted a complex change in the law and is being audited. Aware that he probably should have an expert represent him before the IRS, Tom has hired Josephine, a local CPA. During the audit process, Josephine finds expenses that Tom had failed to deduct. However, the IRS also disallowed some of Tom's other deductions. During a meeting, Josephine and the IRS agent agree on Tom's revised taxable income. When Josephine receives the auditor's change letter, she checks the agent's calculation and finds that the agent has miscalculated the new tax liability by $750 in Tom's favor. In fact, Tom will now receive a refund. When Tom receives his copy of the letter, he leaves a message on Josephine's voice mail congratulating her on her work. You are Josephine's assistant. Josephine asks you to write a letter to Tom explaining the course of action she must take.


Harold works for the Zanten Corporation. Ken is self-employed. Zanten pays all of Harold's medical insurance premiums, whereas Ken purchases medical insurance from his insurance agent. Explain how the payments of Ken's and Harold's medical insurance are treated for tax purposes. Does this treatment meet Adam Smith's equity criterion (refer to chapter 1 in the textbook)?

Textbook to use for reference:

Concepts in Federal Taxation, 2014 edition

Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher.

Reference no: EM131329057

Complete david and lauren tax return for the year

Complete David and Lauren’s tax return for the year. Make all computations (including any special elections required) to minimize the Hammacks’ tax liability based on current

Advise ausgeo on the assessability

For the year ending 30 June 2017, advise AUSGeo on the assessability of the payments received from U-Trains, supporting your arguments with legislative references and applic

Calculate the taxable income of durban dry distillers

Calculate the taxable income of Durban Dry Distillers Ltd for the year of assessment ended 31 December 2009. Your calculation should start with profit before tax amounting t

How much federal income tax they will save

How much Federal income tax they will save if Ella quits her job - Write a letter to David addressing these concerns. Note: In making your projections, assume that David's sa

Discuss how some tax systems place a double tax on saving

1. Discuss the way that saving is taxed under an income tax and a consumption tax. Which is more efficient? Why? Which is more equitable? Why? In your explanation, be sure to

Calculate texs taxable income assuming he chooses engagement

Calculate Tex's taxable income assuming he chooses engagement 1 and as- suming he chooses engagement 2. Assume he has no itemized deductions other than those generated by en

What are the risks with the given strategy

Duff is contemplating using this "strategy" of not reporting cash collected in his business to minimize his tax liability. Is this tax planning? What are the risks with this

A tax-exempt organization

Nonprofit organizations must fulfill certain state laws and federal laws to be registered as a nonprofit entity. In addition, there are filings that are required for nonp


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd