Question

In a response to public outcry over the Internal Revenue Service’s (IRS) extent and abuse of power, the Federal government has decided to disband the IRS in favor of creating a new administrative agency to oversee taxation. As a business owner, what steps might you be able to take to ensure there are control’s and limits to the agency’s power? How does this compare with the controls available to branches of the government?

Answer 1

Answer:

Tax: A tax is defined as the mandatory financial charger on the citizens by the government on the identified categories like income tax, sale tax, road tax, property tax etc. The citizens are liable for paying these taxes to government and legal actions can be initiated upon non-submission of tax by citizens.

Background:

Due to various issues and abuse of power, the Federal government has decided to disband the IRS and in favor of creating a new administrative agency to oversee taxation.

As a business owner, following steps we will be able to take to ensure there are control’s and limits to the agency’s power are as below.

• Agency to have robust process for taxation management so that taxation can be managed effectively as per government process.
• Agency to have adequate administrative management for the agency, so that agency operation can be run effectively without power abuse.
• Agency has sufficient internal control system, so that the authority of agency cannot execute/explore misconduct/ misuse/ abuse of agency’s power for personal interest.
• Agency to have consumer complaint registering system, so that any business owner can raise their complaints of misuse/abuse of power with any businesses.
• Agency to have escalation system and should be supported by the government authorities, so that consumers can raise their issues/concerns to the management of agency/government authorities.
• Agency to have a weekly/biweekly open forum where the business representatives can raise their concerns/ issues against the management of the Agency in a open forum and management to provide the resolution for the same..

Comparison with the controls available to branches of the government: This agency will be have controls in the similar ways the branches of government. In the agency, the consumers/business owners will be able to raise their issues/problems; they can escalate their issues to senior management / government authorities. Agency will provide open forums where business owners can raise their issues and seek resolution.