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The IRS has published some of its own statutes that govern tax accounting and laws. When studying tax law and how it applies to the accounting field there are many areas that must be addressed. In this paper only three areas will be addressed. This paper will address the modern income tax statutes and their objectives, comparing and contrasting the GAAP and tax accounting, and finally how to differentiate between tax avoidance and tax evasion.
The objectives of modern income tax statutes are to simplify the confusing language used when the tax law was created in 1861, to help pay for the costs of the civil war, as part of the Revenue Act of 1861...
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