Answer
Federal tax procedures include,
Timing of audits, notice of deficiency, burden of proof, US tax court, US district courts, US court of appeals, US supreme court, failure to file penalty, failure to pay penalty, reasonable basis standard, substantial authority standard.
Alternative Minimal Tax (AMT):
In Alternative Minimal Tax, the regular income tax is computed, then some of the deductions are added in order to reduce the taxable income. Flat $45,000 is deducted and then the tax on balance at the rate of 26 percent is calculated. Then the amount which is higher is paid.
Marriage Penalty:
When two individuals of equal incomes got married, then marriage penalty occur on both. There is a change in couple’s total tax bill. The couple has to pay the tax jointly.
Marriage penalties are 12% higher of couple’s income.
Capital Gain Rate
The capital gain is a profit that is earned by the sale of a capital asset. The year in which the capital asset takes place, the capital gain is charged to tax in that year.
