Tax Law & Accounting Essay Example | Topics and Well Written Essays - 1000 words

Tax Law & Accounting - Essay Example As any tax lawyer will admit, tax code is some of the most difficult kind of language that one will encounter. The objectives of our modern income tax statutes are basically to inform the public of what is required by them when they fill out their income tax reforms. The modern income tax statutes are a code that is used to navigate the sometimes nebulous areas of the law that arise when income tax season arrives. Usually, only experienced accountants or tax lawyers (and occasionally, some tax preparers) will have in-depth background knowledge on this subject. This is not to say that the average citizen couldn't learn income tax statutes, but it may prove difficult without proper training. [Primarily:]a) Officially established accounting principles consist of FASAB Statements of Federal Financial Accounting Standards.and Interpretations. FASAB Standards and Interpretations will be periodically incorporated in a publication by the FASAB" ("Generally Accepted Accounting Principles," 2009). On a functional level, this first principle basically has to do with the standards that were generated regarding accounting. These standards within this principle are the keys to the accounting industry, because, without standards, people in the accounting industry would have no accountability. This first principle is therefore the guiding light of what must be the exemplar par excellence for all accountants. They must adhere to this principle first and foremost as a formal exercise, and not merely because it is good business sense-but because it is legally within the FASAB's right to impose such standards on the accounting industry. Without this principle, there would basically be little else that would hold together the industry in an ethical manner. Moreover, there are additional standards which must be held to: "b) FASAB Technical Bulletins and, if specifically made applicableand clearedby the FASAB, AICPA Industry Audit and Accounting Guides; c) Technical Releases of the Accounting and Auditing Policy Committee of the FASAB; and d) Implementation guides published byFASAB staff, as well as practices that arerecognized and prevalent infederal government" ("Generally Accepted Accounting Principles," 2009). These last three principles demonstrate yet more examples of regulation within the accounting industry. There are bulletins and guides which must be followed according to the FASAB. These are invaluable to the accountant because they are the touchstones of good accounting-which basically state what is allowed and what is not allowed. Further, a guide outlining the auditing policy of the FASAB Committee gives the accountant an idea of how information will be reviewed should auditing occur. Auditing is basically when the federal government checks a company's or an individual's record books,