Solutions Manual
Solution Manual for Fundamentals of Taxation 2018 Ed 11th Edition Ana Cruz , Michael Deschamps, Frederick Niswander, Debra Prendergast , Dan Schisler
CHAPTER 1 – SOLUTIONS END OF CHAPTER MATERIAL Discussion Questions 1. (Introduction) Give a brief history of the income tax in the United States. Answer: The first federal income tax was enacted in 1861 to help finance the Civil War and was discarded soon thereafter. In 1894, another income tax was promulgated by Congress to raise additional tax revenue and to expand the sources of revenue. In 1895, the Supreme Court ruled that the federal income tax was unconstitutional. In 1913, the sixteenth Amendment to the U.S. Constitution was enacted. This amendment gave Congress the power to levy and collect taxes. In 2015, the federal government collected about $1.45 trillion in individual income taxes. Feedback: Learning Objective: Introduction Topic: Income tax history Difficulty: 1 Easy EA: No
2. (Introduction) For tax year 2015 what proportion of individual income tax returns was filed on a Form 1040EZ, Form 1040A and Form 1040? What proportion was electronically filed? Answer: In 2015, 16.0% of individual income tax returns were filed using a Form 1040EZ, 27.3% using a Form 1040A, and 56.7% using a Form 1040. Electronically-filed tax returns were 87.8% of total returns. Feedback: Calculated from Table 1-1 Learning Objective: Introduction Topic: Income tax data Difficulty: 2 Medium EA: No Cruz et al. Fundamentals of Taxation 2018
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