Question

"Learning Experience and Application of Knowledge"

• Reflect on recent tax law changes such as the Tax Cuts and Jobs Act of 2017 or other pending legislation. Speculate on how this legislation will impact organizational tax research and planning. Share your observations about the legislation, along with what laws or regulations you think could change (or remain the same) in the future.
• Finally, share one tax research or planning concept that you learned in this course that will have the most immediate impact on your professional life.

Answer 1

Reflect on recent tax law changes such as the Tax Cuts and Jobs Act of 2017 or other pending legislation. Speculate on how this legislation will impact organizational tax research and planning. Share your observations about the legislation, along with what laws or regulations you think could change (or remain the same) in the future.

Recent tax law changes that have been introduced by the Tax Cuts and Job Act are that of consolidation of Net Operating Loss on Tax Returns. This change requires companies to consolidate the tax returns and the financial statements of acquired corporations. In pursuing of such law, there are advantages and disadvantages to the acquiring corporations. Some of the advantages are that, where acquiring corporation acquires a company that has losses, upon consolidation of the returns, the losses will offset the profit from acquired company. This is advantage to the corporations because, the profits will be offset by the loss and taxes will be paid on the balances. Also the Net Operating Loss allows the taxpayer to carry foreward the losses up to 20years with effect from December 31, 2017. The offset can be up to 100 percent and unused losses can be carried forward, (Rupert T. et al., 2019). The disadvantage to the IRS is that, there might be taxpayer who may take advantage of this law and uses to loopholes to avoid paying taxes. Therefore it is important for the IRS to review the laws frequently to make changes.

In the future; I think the duration of years to carry forward loses should be changed or minimized. Because if the corporations are allowed to carry forward loses for 20 years, some of unfaithful taxpayers may take advantage of the law and avoid pay taxes.

Share one tax research or planning concept that you learned in this curse that will have the most impact on your professional life.

I have learned there is criminal fraud and civil fraud. All of these frauds are committed purposeful to avoid taxes. The Civil fraud cases are initiated y Criminal Investigation (CI). The CI is conducted where there are evidences or circumstances that shows there are elements of intentionally fraud. So once CI proves that the intention was purposeful, the person conducted fraud actions will be punishable under the law. I have learned however that, all frauds are punishable under the law, once there is a proof of commitment of offence, the person will be required to pay escaped taxes, penalties and interest or even imprisonment as per the U.S. Laws.

I have also learned that tax consultants, I have obligation and duty of ordinary care, therefore must make sure that they know details of the information of taxpayer presented in the financial statements before sign and approve them for tax purpose. This is because, whenever investigation will be conducted and tax official observe that the tax consultants are part of the violation, will face the sanctions which include conviction of criminal offence under federal tax laws, conviction of criminal offense by involving dishonesty or breach of trust and conviction of felony under Federal or State Law that renders practitioner unfit to practice before IRS.