Overview of tax Flashcards
Which courts have original jurisdiction?
Tax Court, US District Courts, Us Court of federal claims.
Tax Court
“Poor mans court” Most common, tried by judge. Don’t pay deficiency first.
US District Courts
May have jury,pay deficiency first. Sue in your district.
US Court of federal claims
No jury, pay first, residency irrelevant.
Gross Income (Section #)
61
Adjusted Gross income (ABL Deductions) (Section #)
62
Allowance for deductions (section #)
161
Trade or business expense (Section #
162
Standard deduction (section #)
63
Tax Credit section #
53
Un-reimbursed Medical expenses section #
213
Moving EXPENSES section #
217
Percent of itemized v. standard deduction?
30% itemize, 70% standard
When are ABL deductions available?
Both itemized or standard deduction
When are BTL deductions available?
Itemized only.
We have a __ Tax system
progressive
Taxable income formula:
GI-ABL-Deduction-exemptions =TI
Tax credits are:
Dollar for dollar reduction
Marginal tax rate is:
Rate at which next dollar earned would be taxed.
Deductions are:
dependent on marginal tax rate to determine its value.
Child deduction section #
24
Sources of Tax Law
- Code: IRC Title 26
- Treasury Regs
- Case Law
- Other IRS guidance
How to cite IRS CODE?
IRC
Two types of provisions in code:
- If…then
2. Definitional
Treasury Regs
Interpret the code. It is the law
IRS Guidance?
Revenue rulings
