Income Tax Law

The Income Tax Law

Income tax returns make up the largest number of returns in the United States, followed by corporation income tax and employment tax returns. While the law in IRS publications states that such payment of tax is voluntary, the failure to file a tax return can result in criminal penalties that can include fines and imprisonment as well as civil penalties. Thus, the requirement to pay taxes is not voluntary; rather it is imposed upon all obligated to do so. Once the tax return has been filed, payment is required at the fixed time and place.

Do tips, wages and other compensation received for personal services amount to income and thus, require that the income tax returns reflect such compensation? Are these 憈ime reimbursement transactions?subject to tax laws? Any income, regardless of the source, unless it can be established specifically to be excluded or exempted, is construed to be gross income?and thus require that income tax returns reflect it. This means that salaries, wages and any other economic benefit received from services performed or to be performed in the future are liable to taxation.see post at http://www.newsghana.com.gh/new-income-tax-act-896-in-place/

The Internal Revenue Code of 1986 imposes current income taxes as progressive taxes on individuals, companies and estates. While the income tax law of the United States is indeed complex, any exclusions or deductions are specifically stated by Congress and as a result, taxpayers are not expected to deduct or exclude income of any item from their income tax returns.

How though are income tax returns filed? April 15 is the deadline for individual taxpayers to file their income tax forms. Taxpayers who earn less than $56,000 are allowed to file their taxes electronically for free. Income tax preparation by filing taxes online is not difficult.

Income Tax Law

In addition to not requiring one to hire a tax professional, filing taxes online uses the same basic question and answer format that software or a tax professional will use, except that this is much cheaper. Filing income tax returns are made easy since you follow a step by step format after which your income tax return will be calculated and then e-filed and sent to the IRS. Online tax preparation programs have the real benefit of allowing you to get your money back more quickly; they are more accurate and less frustrating. Thus, federal income tax returns need not be difficult to prepare. They also need not be expensive.