Income Tax Authorities - Income Tax Authorities, Income Tax Laws Video Lecture | Income Tax Laws - B Com

in this short video I'm summarizing our
appendix a at the end of our chapter one
as you probably learned in a high school
civics class there's three different
branches of government and of course the
legislative branch is responsible for
creating tax laws so in the case of
federal laws we're looking at the US
Congress that's divided up into two
different houses one is called the House
of Representatives where by law all
taxes have to be or taxes have to
originate in this house House of
Representatives and the other house is
the excuse me the Senate of course
that's two senators per state and each
of the houses has lots of different
committees that specialize and certain
types of laws in the case of tax laws
for the House of Representatives the
very powerful Ways and Means Committee
works on tax laws and in the case of the
Senate the Finance Committee works on
tax laws so eventually the specific work
is finished by these two committees and
voted upon by each of the two houses and
if there's differences between what was
passed by the two houses then Congress
forms what we call a a joint conference
committee where they iron out those
differences and then the specific law
called public law is passed by the
legislature which is really updating the
existing law of the United States called
the United States code and one of the
chapters in this code is what we work on
the Internal Revenue Code okay so these
public laws are passed by our
legislature and then sent over to the
president under the administrative or
executive branch of our government to
either approve or veto
and if approved then it's the
president's responsibility to execute to
carry out the laws under the president
there's lots of different cabinets or
departments one of which is the United
States Treasury in addition to printing
money one of the responsibilities of the
Treasury is to enforce the tax laws and
they do it through a department called
the Internal Revenue Service and what we
see from the Internal Revenue Service is
lots of tax forms and instructions
but the main thing or main laws that the
IRS publishes is called rules and
procedures in the case of the Treasury
it prints out a lot of regulations so
some of these terms are mentioned in the
appendix in fact going back here for the
House Ways and Means Committee Finance
Committee and Joint Committee they may
print out something called reports
describing what the intent of the law is
and again this is the actual law here
passed by Congress and approved by the
President and then enforced by the
executive or ministration branch so
let's say that you file your tax return
and you get audited and you disagree
with what the IRS says you all well
before you try to take it to court you
would try to appeal within the IRS
either with the auditors supervisor or
there's a department within the IRS just
for appeals and they take into
consideration possibly any costs they
would lose if it was appealed to a court
but if you cannot agree with the IRS
that excuse me and you don't want to pay
the tax in the specific court you would
take your case - it's called the Tax
Court to get into the Tax Court you do
not have to prepay any taxes the IRS
says you all
okay so in the tax court you would bring
up your case now if you did pay the tax
and file for a refund and the IRS lien
is your refund that another court you
can take your case to is called the
district court and if you lose your
cases in either of these courts then you
can appeal it to the next level
call the Circuit Court of Appeals here
in Hawaii we're in the ninth circuit of
the u.s. the Ninth Circuit Court of
Appeals which includes also California
there's different circuits for different
parts of the US and if they hold
differently for the same situation like
maybe the Ninth Circuit holds in favor
of the taxpayer and the Eighth Circuit
holds in favor of the IRS then that's a
typical type of situation where they
appeal to the next level which is the
Supreme Court very few cases get to the
Supreme Court
and more so very very few cases tax
cases get to the Supreme Court level so
all of the cases mentioned in these
courts are then written up as decisions
and used as authorities so we have
authorities for case laws authorities
for regulations rules and procedures
including forms and instructions by the
executive branch we have the actual law
over here and then committee reports
from the legislature all as tax
authorities we can use so not just what
you read in a textbook but professionals
would go to these authorities to
determine how they should handle
specific tax situations