Taxation is a concept that has long been used in different countries for over hundreds of years. Over those years, hundreds if not thousands of laws have been passed regarding tax which made it evolved into the tax that we now know of today. This article will discuss the frequently asked questions regarding taxation.
1. What is tax and why is it important? In order for a society or country to develop and be stable there are certain projects or agendas that the government must do in order for this to happen which include public infrastructures (railways, roads, highways, and buildings), healthcare systems (to make healthcare accessible to majority of the population), financial systems (to regulate income and expenses), educational systems (to provide adequate education to the masses), safety and security (through the military and police force). All of these projects require money, money that is used to fund these projects comes from tax, and this is why tax is so important.
2. What are the different types of taxes and who collects them? Tax is collected from income, different types of taxes are collected from different types of income which include income tax (tax that is collected from salaries through jobs), real estate tax (tax taken from individuals who own property or real estate), and capital gains tax (tax money that comes from paper assets such as bonds, mutual funds, and stocks). In the United States of America, tax is collected and regulated by the Internal Revenue Service or the IRS. This website contains helpful information regarding the different types of taxes; view the website here at this link.
3. What happens when I don't pay my taxes? Aside from collecting taxes the Internal Revenue Service (IRS) is in charge of regulating tax, the IRS regulates tax by imposing certain consequences on individuals or businesses that don't pay their taxes which include seizure of assets (such as property and paper assets), penalty fees (fees that are charged depending on the total tax debt), interests (the percentage is based on the whole tax debt), and jail time (an individual may serve jail time from months to years depending on the condition and circumstances). You can find valuable information regarding the consequences of tax evasion from this source.
4. How do I pay my taxes? There are quite a number of methods in paying your taxes which include extensions (for individuals who cannot pay their taxes on schedule) and installment plans that include lump payment (5 or fewer payments or installments), short term (payment done in 24 months or 2 years), and deferred payments (installment plan that is done for more than 24 months that may even reach years). For more information on how to select the best tax payment method it is best that you contact a tax attorney.
If you happen to be in the Pennsylvania area and in need of a tax attorney because you are having problems with your taxes you can get valuable PA tax attorney information from this link right here.
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