Case Brief, Tax Law Study Example | Topics and Well Written Essays - 500 words

Brief, Tax Law - Case Study Example Between 1913 and 1948, each person was supposed to be taxed on their own without considering their marital status. In 1948, the Revenue Act spelt out that each married couple was supposed to file a joint return then remit double the tax that would be paid by a single individual (Fox 59). In 1969, a new class of tax payers called the two wage-earners married couple with a greater combined tax burden. This was the root cause of the "marriage penalty." ii. Does the ‘marriage penalty’ deny a person their freedom and rights in marriage? How is it related on contravenes the Fourteenth Amendment of the US Constitution which guarantees individual freedom? Analysis: The court addressed the issue of the Fourteenth Amendment and the constitutionality of the Internal Revenue Commission laws. While acknowledging that the law offers individual liberty, it was held that the "marriage penalty," in no way, violates the constitution. Besides, while accepting that this law has some adverse effects on individual taxpayers, it is an essential close in the constitution. Tax compliance is a duty and a responsibility of a patriotic citizen. IRC Section 1(D) clearly stipulates that married couple with higher incomes like the Drukers have to fall into a new category from other couples with less income. After all, the court confirmed, Revenue Act of 1948 states such married couples are supposed to file a joint tax return and double their remittances. I.R.C. Sec. 6694 (a) which forms part of the Tax Reform Act of 1976 imposes a penalty of $100 for any deliberate or intentional underestimation when filling tax returns. Such a violation constitutes neglig ence which is punishable by law. Revenue Act of 1948 states such married couples are supposed to file a joint tax return and double their remittances. I.R.C. Sec. 6694 (a) which forms part of the Tax Reform Act of 1976 imposes a penalty of $100 for any