In: Accounting
-what is the purpose of the IRS within our income tax
system?
-Explain why voluntary compliance is a vital component of our
democracy.
-why are taxes necessary?
- the purpose of the IRS within our income tax system :
IRS internal revenue service is an agency which is considered responsible for the levy and collection of taxes under the US government.
It provides all the tax laws and collects revenues in form of taxes for this government. IRS collects individual income taxes and Employment taxes.
The processing of income tax returns also takes place under IRS.
- voluntary compliance is a vital component of our democracy :
Voluntary compliance plays an important role in democracy as
under this people/taxpayers pays their taxes voluntary.
No enforcement is done under voluntary compliance.
Also this provides a good share ofnrevenue in form of taxes.
- taxes are necessary as :
Taxes are the sources of income for the government. Also taxes
provides that each individual or organisation earning profits,
should provide a share of its earnings to the government also.
Taxes ensures that the society is being provided with public services like government hospitals, schools, public libraries, parks etc.
With the taxes incomes, the government pays the government workers and help to support common resources.