In: Accounting
Discuss Tax Compliance, the IRS, and the concept of Tax Authorities. Additionally, discuss filing requirements, IRS audits, the federal court system that adjudicates federal tax law, and the Internal Revenue Code.
Tax compliance refers to taxpeyers' decision to comply with tax laws and regulations by paying tax timely and accurately.The problem of tax compliance is as old as taxes themselves. Characterising and explainingthe observed patterns of tax noncompliance, and ultimately finding ways to reduce it, are of obvious importance to nations around the world. The economics of tac compliance can be approached from many perspectives: it can be viewed as a problem of public finance , law enforcement, organizational design, labour supply or ethics, or a combination of all of these.
The IRS stands for Internal revenue Service which is as U.S. government agency responsible for the collection of taxes and enforcement of tax laws. Established in 1862 by President Abraham Lincoln, the agency operates under the authority of the United States Department of the Treasury, and its primary purpose includes the collection of individual income taxes and employment taxes. The IRS also handles corporate gift, excise and estate taxes, including mutual funds and dividends. People colloquially refer to the IRS as the " tax man".
Tax Authority means any Governmental Authority having jurisdiction over the assessment, determination, collection or imposition of any tax. It also means any taxing or other authority competent to impose any liability in respect of Taxation or responsible for the administration or collection of Taxation or enforcement of any law in relation to Taxation.