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Assignment 4: Estate Tax - Essay Example
Finance & Accounting
Pages 6 (1506 words)
Assignment 4: Estate Tax IRS’s current level of interest and audits in estate tax and need for tax planning IRS or the Internal Revenue Service is an agency or bureau that functions under the US federal government. The Internal Revenue service is controlled by the direction of the Commissioner of Interval Revenue…
Looking at the figure of 2010 fiscal, the estate tax returns amounted to 0.02% of the total tax return with huge losses in tax revenue. Currently, IRS has modernized tax collection methods and has three computerized tax collection centers apart from ten other tax collection centers. The centers receive returns over mail and compile the returns at their end. The current level of interest and audit has tightened like ever before. IRS is reconsidering the method of valuation of estate tax for wealthy individuals. In the process, the agency has also discarded some of its favorite methods of tax valuation. IRS is currently more concerned about the family limited partnerships and their tax-saving structure. Tough auditing by IRS has been recommended on the face of US Congress’ past failure to implement federal estate tax. The federal estate tax is back in vogue with higher tax rates of 55% for estates of 1 million dollars worth or more as compared to 45% tax on $3.5 million or more wealthy estates. As a result of increased focus on estate tax, IRS recommend on an average of $363149 million tax to estates after conducting due audit. ...
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