Taxation - Assignment 1 Example | Topics and Well Written Essays - 500 words

Taxation - 1 - Assignment physical exerciseConsumptive taxes be levies on sales of commodities that are subject to use by a course or an individual. While some people understand that a small fee is added on to the buy of commodities in stores, many overlook additional taxes. An example of a consumptive tax is hunting or fishing. Travel fees and toll road levies are also part of consumptive taxes.The IRS carries out three contrasting types of examines fields audit, accountability audits, and correspondence audits. If one is audited, the IRS notifies them in writing indicating the type of audit they are conducting.In an office audit, a taxpayer physically takes their documentation to an IRS secernate office where IRS examiners review the details of the taxpayers documentation. Instances of IRS office audits include circumstances where a taxpayer cl asks abnormally high deductions and the IRS wants to see the conforming support documents to verify that the development is accura te.A correspondence audit is the mildest audit and normally occurs due to minor mistakes on a taxpayers tax returns. Usually, a taxpayer mails the relevant forms and documentations to IRS to complete correspondence audit. The IRS then reviews the full information send by the Customer and closes the audit after addressing all issues.Under Field audit, IRS auditors visit the office or billet of the taxpayer to verify that the tax returns were accurate. The main dissimilarity between a field audit and an office audit is that a field audit happens on the premise of the taxpayer while an office audit happens in the IRS branch office. Individuals may request the IRS to perform the field audit at the premise of the taxpayers accountant.The main aim of audits from a governments point of view is to ensure that every taxpayer adheres to the same tax laws and that the taxpayers are reporting and paying taxes correctly. IRS Tax Audits