DEPARTMENT OF COMMERCE

MANIPAL ACADEMY OF HIGHER EDUCATION MANIPAL,

INDIA - 574104

TOPIC:
A STUDY ON INDIVIDUAL TAXATION AND FORM 1040 IN
UNITED STATES OF AMERICA

SUBMITTED BY:
PAWAN PAI B – 202628026
Masters in commerce

UNDER THE GUIDANCE OF:

DANIEL FRANK
(Assistant Professor)
Department of Commerce
Manipal Academy of Higher Education, India - 574104

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 DECLARATION

I Pawan Pai B, student of M.com Professionals, Department of Commerce, Manipal Academy

of Higher Education. Thus, declare that the internship report titled ‘A study on Individual
Taxation and Form 1040’ being submitted to Department of Commerce, Manipal Academy of
Higher Education, It is my original work which is not copied from other material which is
subtitled to any other Degree, Diploma or any other similar title. The report was completed
under the instruction of Professor Daniel Frank during the academic year 2021-2022.

Pawan Pai B (202628026)

Department of Commerce

Manipal Academy of Higher Education

Place: Manipal

Date: 27-04-2022

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 CERTIFICATE

This is to certify that project report titled “A STUDY ON INDIVIDUAL TAXATION

AND FORM 1040 IN UNITED STATES OF AMERICA'' is submitted to Department of

Commerce, Manipal Academy of Higher Education (MAHE), Manipal, towards partial

fulfilment of the requirements for the award of M. Com degree. Mr. Pawan Pai Reg. No.

202628026 has worked under my supervision and guidance. No part of this report has been

earlier submitted for the award of any Degree, Diploma, Fellowship or any other similar title

or prizes. The work has not been published in any journal or magazine.

Daniel Frank
Date : May 12, 2022
Place : Manipal

New Management Block, Near 9th Block, MIT Campus, Manipal 576 104, Karnataka, India•
Ph: 91820 2925342

• Fax: 91 820 2925341 • e-mail: doc.office@manipal.edu

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 CERTIFICATE BY THE COMPANY

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 ACKNOWLEDGEMENT

I found the internship training at Mytaxfiler to be a beneficial experience. I want to show my

gratitude to everyone who helped me get this training.

First and foremost, I would like to thank Ms. Thara Palan & Mr. Guna Pai (General Manager
- HR-Admin), Mr. Mohammed Faizulla (Senior Tax Associate & Manager), Mr. Bharath Bhatu
(Senior Tax associate), Mr. Nesar GB (Tax Associate) for the support and guidance throughout
my internship.

I'd also want to express my gratitude to my parents and family members for their
encouragement and support during the process.

Pawan Pai B

M.com Professional

Department of Commerce

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 TABLE OF CONTENTS

SL NO PARTICULARS PAGE NO

1 INTRODUCTION & COMPANY PROFILE 8

2 OBJECTIVES & RESEARCH METHODOLOGY 8

3 LITRERATURE REVIEW 9 - 10

4 DISCUSSION 10 - 25

5 FINDINGS, SUGGESTION & CONCLUSION 25 - 26

6 REFERENCES 27

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 APPENDIX

DEPARTMENT OF COMMERCE, MANIPAL ACADEMY OF HIGHER EDUCATION, MANIPAL, KARNATAKA

(INDIA)
M.com - IV SEM - INTERNSHIP LOG CO1: CO2: CO3: CO4: CO5:
MCMPR702.1MCMLS 702.1/MCMBT702.1 Outline Develop Examin Design the Develop
the topic methodolog e and conceptual the study
in y research framewor into
domains the k an practical
Attendance / Marks / Feedback of best its details
interests practices applicati of the
in on to the project
identifie project
d
domain
with
examples

(10 Marks)
Reg. No.: 202628026 Student Name: Pawan Pai B (10 Marks) (10 Marks) (10 Marks) (10 Marks)

Week Atten CO 1 CO 2 CO 3 CO 4 CO 5
No. dance Marks Marks Marks Marks Marks Total
Joined as an intern at MyTaxFiler, in the 1st week of the
internship, we had a training session regarding to the
individual taxation, training session had topic on tax free
1 Present
state, time zone, filing method, filing status etc

2nd week we had training session we had software training,

here we thought how to make data entry, and also we
different forms like 1099-INT, 1099-DIV, 1098-Mortgage etc
2 Present

In the 3rd week we were assigned to the different teams, and

I was part of team gamma, in the 3rd week I was assigned 4
clients and I had to prepare tax returns and update to the
Present
reviewer then I need take client calls and responds to emails
and need to explain the clients regarding to the tax returns
3 - 13
whether they are getting refund or due later as a service
charge I need to take invoice. Also, I was assigned a client
who wanted to apply for ITIN for that I need to take Google
meet for the ITIN verification process for one of the client.
In the 13th week I was assigned about 78 clients, all the tax

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 returns must be sent for E-filing once it is E-filed I need to
send the Acknowledgement to clients through E-mail.

In the 16th week, almost every tax return was completed,

and the acknowledgement was sent, some of the clients
asked me to file for extensions, on the last day every
16 Present
pending work need to be assigned to the team leader.

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COMPANY PROFILE:
GVA Business Solutions Pvt ltd aka MyTaxFiler was established in the year 2008
January 26th. MyTaxFiler provides top quality tax and consulting services, from income tax
solutions and business formations and payroll processing to business consulting corporate
taxation services. The company provides end to end financial solutions for businesses and
individuals.

The core services provided by the organization for self-employed, salaried, high net
worth individuals in the United States. Tax planning, Tax preparations, Filing and Advising
services provided the company.

INTRODUCTION OF TOPIC:

The United States levies tax on its citizen and residents on their worldwide income,
non-resident aliens are taxed on their US source income. Individuals or the taxpayers must
adopt the calendar year as the tax year. The taxpayers can claim either standard deduction or
itemized deduction on taxable income. Last date to file tax is on 15th April, however an
individuals can file for extension by applying form 4868, so that the taxpayer gets additional 6
month to file tax return.

The official document used by the US taxpayers to file their annual income is form
1040. The form 1040 which is divided into sections that provide income and deductions to
determine your tax obligations or expected refund amount

OBJECTIVES:

• Understand the process of US tax preparation and filing of individuals.

• Analyse federal taxation procedure followed in the United States.

RESEARCH METHODOGY:

The purpose of this study is to gain a better understanding of the significance

of Federal taxes. Secondary sources were used to collect data for this study, and the
information was acquired from corporate rules and the IRS websites.

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REVIEW OF LITERATURE:

We divide primary and secondary earners based on who has the higher earned income
rather than gender. Although this is not always the case, the second earner usually has the lower
wage rate. Second-earners' average wage rate, on the other hand, is significantly lower than
that of primary earners. In OECD countries, women represent approximately 80% of second-
income earners. for an interesting analysis of the shifting gender makeup of second earners
based on panel data taken from US federal income tax returns (McClelland et al, 2014). The
article’s main objectives are to understand how US taxation works and to provide us a basic
understanding of US taxes, understanding how taxes are applied at the Federal, State and
municipal levels is beneficial, the study also looks at a few concepts that have an impact on tax
returns (Hoffman, Raabe, Nellen, and Malonry et al, 2017). In this study, the article
demonstrated how the US tax system works as well as a fundamental comprehension of Form
1040. we will come across a variety of schedules and papers in addition to the 1040 form. The
research displays how the IRS classified incomes into schedules (Cascio and Lewis et al, 2019).
The individual income tax, which is the largest important source of government revenue in the
United States, is the subject of this article. This examines many aspects of the tax from a
historical perspective. The size of the tax base, as well as the role of exclusions, deductions,
exemptions, and credits in defining that base, as well as tax-exempt income levels and the rate
structure's overall progressivity, are all elements to examine (Bakija & Steuerle et al, 1991).
The article describes how the US tax system categorises income. Also, to appreciate the
significance of completing individual tax returns in the United States. Individuals must pay
taxes on their earnings, or the Internal Revenue Service will levy substantial penalties and take
legal action against them (Akcigit and Grigsby et al, 2018). This report summarises the
variations among the Standard deduction and the itemised deduction, in addition who is entitled
to the standard deduction and itemized deduction. Which deduction is extra useful for the
taxpayer to consist of in his tax return? To placed it simply, something sum is better need to be
taken into consideration a deduction (Benzarti et al, 2020). The reason of this newsletter is to
assist the reader apprehend how the earned tax credit score works in a non-public tax return.
The article then is going directly to discover the monetary problems affecting the earned
earnings tax credit score, in addition to the capability and terrible consequences at the tax
system (Meyer et al, 2008).

The author conducted a pursuit on “Effects of taxation Changes on Economic

Growth” this text explores how individual tax have a greater effect on the long- term process.

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Tax cuts may enable people to save lots of and spend, but if they are doing not appear to be
funded by instant spending cuts, they'll find yourself with a deficit within the expanded federal
budget, which can raise interest rates within the future and reduce the government's national
saving. For the future, the impact of the speed or tax cuts on the budget deficiencies are often
removed by the measure of the expansion of the bottom, but by the reduction of manpower,
expenditure, and savings, they reduce the influence on growth. By using the very best economic
benefit, capital in various industries is also altered, resulting in an improvement within the size
of the overall economy and improved productivity (William G. Gale et al, 2014).
The researcher conducted a study on “Taxes and Foreign Direct Investment in the United
States: A Re-examination of the Evidence” this paper relates to capital flows to some degree
of efficiency ratio. on capital income. The author says that given the evidence that tax rates
affect investments, there is some harshness to the conclusion. They argue that this lackluster
result may be partly due to the fact that previous efforts to study financial flows rather than
investments themselves have not taken into account the various procedures that international
multinationals use. can be used to play a role. in U.S.A. (Alan J. Auerbach et al, 1984). Note
that taxpayers with large and non-comparable income may declare less than 100% taxpayers
who collect most of their income under self-report cannot easily eliminate all their income enter
their self-declaration. The basis of this argument is the fact that high-income taxpayers who
have never experienced verification and detection rates often increase even with small
increases in noncompliance, and not only at the discrete point where taxpayers report less than
100%. their unaggregated income and start reporting lower income (Kleven et al, 2011, p. 658).

DISCUSSION: US INDIVIDUAL TAXATION

States:

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In 2022 totally 51 states in United states out of which 9 states are tax free states and 8 states
are subject to County and City taxes.

Tax free states: Alaska, Florida, Nevada, South Dakota, Texas, Washington, New Hampshire,
Tennessee, and Wyoming.

States with City & County Tax: Michigan, New York, Ohio, Kentucky, Maryland, Iowa,
Pennsylvania, and Indiana.

RESIDENTIAL STATUS:

The Federal, State, and municipal governments in the United States Imposes taxes, but
the focus is only on the Federal income taxation. Knowing a person's tax house repute before
creating a fee is crucial for correctly reporting a person's tax duties and in step with IRS tax
regulations. Individuals are categorized as follows for tax functions withinside the United
States.

Citizen Residents
Individuals
Non-
Aliens
Residents

Duel Status

1. Citizens:
Every “citizen of the United States. Whether you had been born withinside the
United States or outdoor of the country with at the least one parent who's a US citizen,
you're subject to US earnings taxes. You also are appeared a US Person when you have
grown to be a naturalized citizen. Every taxpayer withinside the United States.

2. Aliens:
The aliens are divided into 3 categories, they are as follows,

a) Resident Aliens:
The people who are the permanent resident of United States who are not US citizen or
nationals, to qualify as residents they must meet the following tests.

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 I. Green Card Test:
You are a resident, for U.S. federal tax purposes, in case you are a lawful everlasting
resident of the US at any time for the duration of the calendar year. This is called the "green
card" test.

II. Substantial Presence Test:

You can be taken into consideration a United States resident for tax functions in case
you meet the substantial presence test for the calendar year. To qualify, you must be
physically present in the United States (U.S.) on at least:

31 days in the current year (Need not to be in row)

&
Must meet 183 days test
Days in the current year in US*1 (At least 31 days) = --- days
1st preceding year days in US*1/3 = --- days
2nd preceding year days in US*1/6 = --- days
Total days = --- days

III. First Year Choice Test:

This test is basically for the people who came to United States for the first time and
does not meet the SPT requirements are eligible for the test, the rules for this test are as
follows.

• Does not meet the Green card & SPT for prior and current year.
• Did not choose to be treated as a resident for the part of prior year.
• For the year 2022 you should meet the Substantial Presence Test.

b) Non-Residents Aliens:
These individuals are not the US citizen or doesn’t have the Green Card and who have
failed to qualify the SPT and FYCT, the form used for non-residents is 1040-NR and US
earned income are considered.

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c) Dual Status:
In this case the taxpayer is a resident and non-resident in the taxable year, so we
need to create two forms that is form 1040 and 1040-NR.

FILING STATUS OF INDIVIDUAL TAXPAYER IN UNITED STATES:

There are 5 types of filing status they are as follows,

• Single
• Married Filing Jointly
• Married Filing Separately
• Head of Household
• Qualifying Widower

1. Single:
The taxpayer can file as single if the taxpayer is unmarried or legally separated under
the decree of divorce.

2. Married Filing Jointly:

If taxpayer is married, then he can file as Married Filing Jointly, even if they are not
stayed together, if the taxpayer spouse has died in the taxable year and the taxpayer has not
re-married, if any one of the following is true.

3. Married Filing Separately:

In this case if the taxpayer is married and decides to file their tax return separately, then
he/she can file as Married Filing Separately. Note that if the taxpayer file as MFS, then the
spouse of the taxpayer must file as MFS.

4. Head of Household:
If the taxpayer is unmarried or legally separated under the decree of divorce if the
taxpayer has paid more than half of the cost of keeping house and qualifying person lived
with taxpayer in his/her house for more than half of the year.

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5. Qualifying Widower:
If the spouse of the taxpayer has died in 2020 or 2021and the taxpayer has not married
again before the end of 2021, the child or stepchild are claimed as dependents, the
dependents lived with taxpayer and paid more than half of the cost of housekeeping.

DEDUCTIONS AND TAX BRACKETS:

Standard Deductions:

Standard deduction is deduction to the taxpayer total income earned, which was
introduced by the IRS in the budget 2018,

Filing Status 2021

Single $12550
Married Filing Jointly $25100
Married Filing Separately $12550
Head of Household $18800
Qualifying Widower $25100

Tax Brackets for the year 2021:

Tax Single & Married Married Filing Jointly & Head of Household
Rate Filing Separately ($) Qualifying Widower ($) ($)
10% $0 - $9950 $0 - $19900 $0 - $14200
12% $9951 - $40525 $19901 - $81050 $14201 - $54200
22% $40526 - $86375 $81051 - $172750 $54201 - $86350
24% $86376 - $164925 $172751 - $329850 $86351 - $164900
32% $164926 - $209425 $329851 - $418850 $164901 - $209400
35% $209426 - $523600 $418851 - $628300 $209401 - $523600
37% $523601 or more $628301 or more $523601 or more

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Itemised Deduction:
If the expenses are more than the standard deductions then you are eligible for itemised
deductions, this allows taxpayer to reduce the taxes, it includes the expense like real estate
taxes, property tax, mortgage interest, it also includes donations and medical expenses. All
these expenses are listed in schedule A of form 1040.

Taxpayer Identification Number:

1. Social Security Number:
The Social Security Number is a 9-digit number issued to the citizens, resident aliens, and
non-resident alien of the United States by the Social Security Administration, it is an
independent agency of United States of US government usually used to track individuals.

Why SSN is used?

• Mainly for the work purpose
• To open any bank account in any Financial Institution
• And to get benefits from the government

2. Individual Taxpayer Identification Number:

It is also called as ITIN, it is issued by the IRS for the residents and non-residents aliens,
it is also a 9-digit number starts with 9 and 7, 8, 9 in the fourth digit. It is issued to those
who are not eligible to get SSN, it is used only for the tax purpose.

2 ways to apply for ITIN:

• Direct Process:
Here the individual must take an appointment with the IRS and must submit W7 form
and the original unexpired passport and VISA, after submitting the documents it takes
8 – 12 weeks to get an ITIN.
• COA process:
COA means Certificate of Accuracy; a middleman comes it picture and takes the
responsibility of the ITIN process and verify all the documents before sending it to the
IRS.

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Documents required for ITIN:

• Unexpired passport and VISA

• Medical and school records if the individual is below 17 years of age.

FORM 1040:

IRS Form 1040 is one of the official forms that US taxpayers can use to file their annual
income tax returns. The form is divided into sections where you may enter your earnings and
deductions to determine how much tax you owe or refund you will receive. You may need to
attach extra forms or schedules depending on the type of income you report.

The 1040 form below contains two pages, as you can see. On the first page of the form,
you'll be asked for personal information like your name, address, social security number, and
filing status. If the taxpayer submits his return as married filing jointly, he or she must provide
his or her spouse's name and Social Security number.

If a taxpayer desires to include dependents on his or her return, they must complete the
dependents part of Form 1040, which requires the taxpayer's name, Social Security number,
and relationship to the dependent. You may also see if you're getting the Child Tax Credit by
checking the box next to each dependent.

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 3.

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Schedules in individual tax return:

Schedule A: Itemization

Itemized deductions are tax deductions that the IRS allows for specific expenses. You can
itemise your deductions if your total expenses exceed the standard deduction amount. This
provides you with additional tax savings opportunities than the standard deduction. Some costs
that are eligible for the itemised deduction are listed below, according to the IRS.

• Medical and dental expenses: if they exceed 7.5 percent of AGI, they are taxed.
• Paid state, local, and sales taxes: The deduction is capped at $10000.
• Interest on a mortgage.
• Charitable contribution: up to 100% of adjusted gross income
• Miscellaneous expenses: 2.5 percent of adjusted gross income
• Taxes on real estate and personal property.

Schedule B: Interest and Dividend

Interest:

Interest is either taxed or not taxed. Despite the fact that interest income is tax-free, it must
be reported on the tax return. Taxable interest income is reported on the taxpayer's return even
if it does not appear on the form.

Line 2a Tax-exempt interest:

Taxable interest includes interest from a bank account, loans you make to others, and other
sources such as interest on a tax return.

Line 2b Taxable interest:

Interest received from bonds, etc. for qualifying educational costs, Government treasury
bonds, Interest on insurance payouts left on deposit with the United States Department of
Veteran Affairs, and Interest on IRS tax-deferred accounts are also included.

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Dividend:

A dividend is a distribution of a portion of a company's earnings to a class of shareholders

set by the board of directors. A sum of money paid to a company's shareholders on a regular
basis from its profits. On the form 1099-DIV, the dividend income is recorded. The qualifying
dividend is reported in Box 2 of Form 1099-DIV, whereas the regular dividend is recorded in
Box 1 of the same form.

a. Line 3a Qualified dividend:

Qualified dividends are taxed at a special rate, ranging from 15% to 20%, and are
reported on box 1b of Form 1099DIV.

b. Line 3b Ordinary dividend:

Ordinary dividends are taxed at the standard rate and reported on box 1a of Form
1099DIV.

Schedule C: Self Employment income and Business Income

Business income refers to any revenue made by a company. Even if you are only
participating in the activity on a part-time basis, you can earn money from it. Work you do on
the side to supplement your regular job can be considered business income.

Schedule C is divided into two sections.

• Income
• Expenses

This income must be reported on a 1099-SE form.

Schedule D: Capital Gain & Loss

Capital asset, short-term and long-term capital gains and losses are all examples of capital
gains and losses.

Short-term capital gain refers to gains or losses made within a year, whereas long-term capital
gain refers to gains or losses made over a year. Based on their income, long-term capital gains
are taxed at special rates of 0%, 15%, and 20%, respectively. Losses of up to $3000 for MFJ

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 and $1500 for others can be set off in the current year, with any remaining losses carried
forward to the following year. In most cases, capital gains and losses are recorded on Form
8949.

Long term Married Filing

Single Head of Household Married Filing Jointly
capital gains Separately

0% Up to $40400 Up to $40400 Up to $54100 Up to $80800

15% $40400 - $445850 $40400 - $250800 $54100 - $473750 $80800 - $501600
20% Over $445850 Over $250800 Over $473750 Over $501600

Schedule E: Rental Income

Schedule E can be used to report the rental property's income and expenses, as well as
depreciation, which is included as an expense. Repairs, cleaning and maintenance, professional
fees, utilities, mortgage interest etc are the expenses.

The asset's life is estimated as follows,

• 27.5 years for property in the United States

• 40 years outside United States

Form W2: Wage & Tax Statement

It is a manual input system in which you enter your earnings, salaries, tips, and other
information. You can include fringe benefits in your line 1 total if they are required to be
reported as income. Here's an example of a W-2 form.

i. “Box 1 Wages, tips, and other compensation”

ii. “Box 2 Federal income tax withheld”

iii. “Box 3 Wages from Social Security”

iv. “Box 4 Social Security tax withheld”

v. “Box 5 Medicare earnings and tips”

vi. “Box 6 Medicare tax withheld”

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vii. “Box 7 Social Security Tips”

viii. “Box 8 Allocated Tips Boxes 1,3,5, and 7 do not include this amount”

ix. “Box 9 Advance EIC Payments. Enter this amount on your 1040 or 1040A's”

x. “Box 10 Dependent care benefits”

xi. “Box 11 Nonqualified plans”

xii. “Box 12 Codes for Box”

xiii. “Box 13 Checkboxes”

xiv. “Box 14 Other”

xv. “Boxes 15 to 20 Information on state and municipal income taxes”

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Various Credits in Form 1040:

It is usually preferred to claim a credit rather than a deduction because a credit reduces
the amount of tax due on a single return, whereas a deduction only lowers taxable income. A
taxpayer may choose to receive the tax benefit even if he or she does not itemise deductions.
They can claim the standard deduction in addition to the credit. Excess or unused credits can
be carried back and forth for a few years. The following is a list of the several types of credits
that are commonly used in federal taxation.

• Child Tax Credit:

If the taxpayer has a qualifying child, then the taxpayer is eligible for this credit, but
must meet the following tests.
o Age test
o Relationship test
o Supporting test
o Dependent test
o Citizenship test
o Residence test

The Child tax credit may be a credit for folks of youngsters ages 16 and under. the child
tax credit is $2,000 per child. the quantity of credit a taxpayer can claim is predicated on
Modified Adjusted Gross Income (MAGI) and earned income.

You may be ready to claim a credit of up to $2,000 for every qualifying child. This
credit reduces your bill dollar for dollar. Once your taxes are reduced to zero, any remaining
credit up to $1,400 per eligible child could also be claimed because the Additional Child tax
credit.

The Child tax credit is worth up to $2,000 for every qualifying child, but that quantity is
predicated on the MAGI of the taxpayer, and phases out when the MAGI exceed the subsequent
thresholds:

$400,000 for jointly filed returns

$200,000 for all other returns.

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• Additional Child Tax Credit:
Most families will receive the complete amount: $3,600 for every child under age 6
and $3,000 for every child aged 6 to 17. to urge money to families sooner, the IRS is
sending families half their 2021 Child tax credit as monthly payments of $300 per child
under age 6 and $250 per child between the ages of 6 and 17.

• Child and Dependent Care Credit:

These credits are non-refundable credits allows taxpayer to reduce the tax burden.
Child tax credits has increased from $ 1,050 to $ 4,000 for one qualified individual and
from $ 2,100 to $ 8,000 for two or more qualified individuals. Increase maximum credit
from 35% to 50% of taxpayer's work-related child and long-term care costs.

• Foreign Tax Credit:

When the taxpayer has other income from foreign country which he has already paid
tax for that, to avoid double tax from both the countries, the taxpayer receives foreign tax
credit, the form used for FTC is 1116.

• Earned Tax Credit:

The Earned Income Tax Credit (EITC) provides tax credits for low to medium income
workers and their families. If you qualify, you can use your credit to reduce taxes payable
and increase refunds.
If your income is low to medium, you can apply to EITC. The amount of credit may
change if you have children or dependents, if you have a disability, or if you meet other
criteria.

• Education Credit:
The maximum credit is $ 2,500 and 40% of the credit will be refunded (up to $ 1,000).
Eligible students are the following students: You are enrolled in a degree, certificate, or
other recognized higher education program for at least one semester beginning of the tax
year. To claim this credit few requirements to be followed,

• A taxpayer or a taxpayer's dependent pays eligible higher education expenditures

• A student must be enrolled in an accredited educational institution to be eligible

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 • The taxpayer, spouse, or a dependent mentioned on the tax return are qualified students
• If a taxpayer is qualified for both AOC and LLC for the same student in the same year,
he or she may only use one of the credits.

SOFTWARE:

This is the software used to file a client's tax return. Drake software is the simplest tax
Software is available. Available in private return packages including online revenue Tax filing
software. It contains all the information Above all. The "business" was strong as Drake was
first commercialized in 1977. rise. They provide both experience and stability to tax preparation
professionals. founded In the North Carolina. Headquartered in Franklin, NC.

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FINDINGS & SUGGESTIONS:

Findings:

During my internship at MyTaxFiler, I conducted a survey over the phone with 78 clients
and got know that,

• Most of the clients are doesn’t know much about US tax rules
• Most of the clients are not happy with the service fees charges by the
company
• To reduce tax most of the clients hide their income
• Majority of the clients are from India
• Many incomplete information or documents sent from the client side
• The quality service provided by the company are excellent as clients are
satisfied with the service

Suggestions:

• Collaborating with new companies to attract new clients which helps the
companies to grow more
• Increase in the quality of service every time
• Some electronically filed tax return gets rejected need to fix that

CONCLUSION:

In U.S. the Government raises revenue by various taxes. It is compulsory to pay taxes on
income or else the individual will face penalties and legal actions, to avoid this everyone tries
to pay taxes on time to avoid the problem. So, it helps many taxation companies to generate
revenue during the taxation season.

When I came to MYTAX FILER as an intern, I learned how the United States is paying
taxes. How will the structure be set, and taxpayers will be affected in the United States? U.S.
tax law is strict It will be implemented, and the process will be fully automated. Taxes are
guaranteed by the filing function of filing tax returns Overall compliance and tax filing will
take much less time. I started working as a tax associate and helped my clients manage their
tax activities and helped customers get their job done. Many people have good skills Our job

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is customer oriented. Overall, I would like to summarize that the internship at MYTAX FILER
was great experience. I learned about the American tax system, how to prepare a tax return,
how to talk to clients, how to work as a team, overall, it was a great experience.

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REFERENCES:

▪ Akcigit, U., Grigsby, J., Nicholas, T., & Stantcheva, S. (2018). Taxation and Innovation in
the 20th Century (No. w24982). National Bureau of Economic Research.
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