To: Chief Financial Officer of JIM
Date: December 4, 2016
Re: Taxpayer Behavior
In this memo, I wanted to discuss three broad restrictions on taxpayer behavior and how it is
affected. Taxes are imposed for the benefit of society. Such as, the courts have created judicial
doctrines to maintain the honor of the Internal Revenue Code. It is merely impossible for
policymakers to predict and discuss each and every incident and business transactions that could
occur. The IRS uses the judicial doctrines to challenge such transactions. Along with doctrines,
there are three excise taxes that are created to influence the behavior of taxpayers also. All of
these are federal income tax. The three taxes are sin tax, gasoline tax, and luxury taxes. Sin tax is
an essential tax that focuses on products that are unhealthy. The tax is utilized to prevent the
