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Comprehension of the nature of the tax situation demands that the investor be fully informed about the federal tax laws that affect various tax attitudes in the United States. In addition, in order to to have a preliminary understanding of the need for access to tax systems, it is crucial that all stakeholders determine which tax systems are most effective the parties involved in the process need to have an understanding of the most efficient tax administrations. In this In this case, it is critical to ensure that Dean Harmon has an understanding of all the basics of the U.S.
tax system before making a decision to purchase US tax system before deciding to acquire any of the items in question.
In particular, this document will be prepared taking into account qestions and provide answers to the questions in order to explain the main aspects that are required in making Dean Harmon understand the major processes involved in the financial obligation in question.
The following are some of the questions that need to be answered in order to help understand the main aspects of the given scenario.
In answering the first question, Dean Harmon might have carried out his audit and found out a number of flaws on the six automotive repair parts stores in NE Florida and South Georgia.
As a result of non-compliance to various tax regulations, Mr.
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Harmon might have changed his mind and lost interest in the purchase. Besides, there could be an issue of not coming to an agreement on the price of the repair parts stores.
Notably, various tax factors might have affected the deal hence making Mr.
Harmon opt for other alternatives and ignore the initial plans. In fact, the seller of the automotive repair parts stores might have not filed his tax returns hence making the buyer to be in a position to reject the offer.
After spending the $10,000 on the said tax audit, it is evident that the CPAs and the auditors might have found a number of negative elements in the proposed business. Such negative factors might have included losses in the past few years, failure to comply with federal tax laws and regulations (Mertens 102). In addition, the audit done on the automotive repair parts stores discovered that the store was not worth the price that the seller had quoted for the store. In addition, the seller might have set tax conditions that are not in line with the buyer.
Based on the audit that cost $10,000, the buyer might have found out some shocking information on the past financial records that made him change his mind about purchasing the repair store. Federal income tax regulations in the United States are based on various statutory factors and a number of regulatory codes that have to be followed by all the users in the national market. This implies that the answers to the tax questions will likely involve a specific section of the current Internal Revenue Code as well as the Code of Federal Regulations. In addition to the factors related to the code section, the answer to the various tax questions should mainly involve finding major tax issues that might affect one's decision to buy or sell as given product.
In addition, the individuals involved in the purchase must make administrative decisions that are only based on administrative pronouncements (Pechman 34) After carrying out an extensive research on how to purchase the radio stations in Carolina, the Fed Communication Commission denied the license. The main reason for this denial could have been as a result of the commission's need to avoid creating monopolies for the company. In addition, the commission might have thought that granting Mr. Harmon the license would give him total control over all the radio stations in Carolina hence creating a situation of patent rights on all the radio stations. In addition, the need to come up with strict rules might have affected the decision of the commission. In view to the expenditure that Mr. Harmon had on all the research and investigations on the purchase decision (Clotfelter 76).
In conclusion, the federal tax system in the United States is one factor that every businessperson needs to follow in order to control the various market factors in the United States. The tax rules are based on the need to ensure that all segments in the economy remain protected and the need to avoid monopolies played a major role in the Fed Communication Commission's decision to deny Mr. Harmon the license to purchase all the radio stations. In addition, the federal tax laws clearly outline the various ways through which acquisition and mergers can be effected. It is evident that Harmon should have contacted the commission before coming up with the decision to make the purchase. As such, he would have prevented the losses that he incurred in the investigations.
Analysis of Dean Harmon's Failure in Following the Tax System in America. (2022, Nov 15). Retrieved from https://studymoose.com/analysis-of-dean-harmon-s-failure-in-following-the-tax-system-in-america-essay
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