temporary regulation
You have been assigned a research project for a new client on the issue of tax compliance. The research results for the client fall under a temporary regulation. Evaluate and describe two (2) types of temporary regulations and explore the effects on the taxpayer. Discuss the weight of the temporary regulation and what issues may strengthen or weaken the temporary regulation.
…………………..Answer preview………………….
Effects on the taxpayer
Withholding of tax that should be remitted on certain U.S source income is a temporary regulation that ensures the taxpayer reports a hundred percent of his income. Failure to do so would lead to a tax evasion suit on the taxpayer and may result in the taxpayer paying more than if he reported all the transactions in time. Withholding on certain payments to foreign financial institutions also forms another type of temporary regulation according to IRS. Doing so would amount to the taxpayer understating his or her actual wealth. It may also be termed as money laundering if he fails to report all the money remitted to the foreign financial institutions…………………………………………………………
APA
283 words
