The laws and regulations govern how the government collects income taxes and other levies on individuals and corporate entities. It ensures the government receives its due revenues to meet expenses.
Our governmental bodies of authority are pretty straightforward. They have plenty of regulations to ensure every penny we pay goes where it's supposed to go.
And who better to tell us the rules than the Internal Revenue Service? We do, of course. The government isn't required to be a publicly-traded company. They have to pay for themselves.
The intricate body of Tax Law covers the payment of taxes to a minimum of 4 levels of government, either directly or indirectly. Indirect taxes are assessed against products and services that are meant to be consumed but are paid to an intermediary. For example, when you buy coffee at a local corner store, the retailer charges you tax on your coffee, which they subsequently pay to the government. Direct taxes are those you pay directly to the government and are imposed against things like land or real property, personal property, and income.
Government entities are many and have included everything from transit districts, utility companies, and schools to regional, state, and federal agencies. Each governmental entity has its arm of the lawand a complex web of tax laws to enforce and collect revenues.
Tax Law is inextricably tied to the tax code. It makes our complex tax law, and thus, it's highly problematic. The tax code has been blamed for the growth and loss of wealth, for giving many breaks, and for not encouraging people to save and economize. These reasons alone are evidence that it urgently needs a major overhaul.
Tax Law is complex. If you work with it, you might start to think that all the tax codes, regulations, rulings, procedures, and statements have to match up perfectly, or you'd somehow get yelled at. But they don't. They have to be applied consistently.
That takes much human interpretation. We'll leave that to you. But regarding the alphabet soup of Federal Tax Law, we want to keep you up-to-date. So, here's your alphabet soup guide.
There are two levels of courts in the U.S. Tax Court system. The 1st stage allows taxpayers to dispute tax issues at the District Court level. If the taxpayer is unsatisfied with the decision, they can appeal it to the 2nd stage, the Federal Court of Appeals.
However, the application for 2nd stage review is more stringent, which can be problematic for taxpayers who want their cases heard at a higher level.
Tax Attorneys serve various functions. They may assist you in navigating this profession's complicated and intricate laws. This includes representing you throughout the different stages of tax disputes, from an initial audit to IRS administrative appeals, Tax Court, and final review by the Court of Appeals, or even the U.S. Supreme Court.
Tax Law is an integral part of the financial aspect of every business. Tax law helps the IRS to collect taxes from people and organizations.
Taxes, levies, rates, duties, imposts, charges, and exactions; whatever name they are called or whatever form they take, and whether the money goes to the government, province, or municipality, they are included here.