The United States Congress is responsible for writing the tax code or Internal Revenue Code. The laws are designed to help with the collection of taxes, tax rule enforcement, and ensure fair issuance of tax refunds. The IRS or Internal Revenue Service is responsible for monitoring and carrying out all of these functions. The IRS is part of the United States Department of Treasury. Below, you will discover an overview of IRS tax laws for beginners.
Tax Code Interpretation
The IRS, utilizing IRS regulations, interprets tax provisions. Contrary to believe, not every tax code has a regulation. The IRS combines revenue rulings, letter rulings, and revenue procedures for guidance. The federal court system settles disputes that arise, this mostly falls into the hands of the judicial branch of the federal government.
It is absolutely essential to remember that not everyone will pay the same amount of taxes. The amount you will be required to pay will depend on a handful of factors. They include your current relationship status and the amount of money you made during the year. A head of a household will be able to make a little more, before they’ll be bumped up to the next tax bracket and be required to spend more.
Married couples can choose to file jointly or separately. Unsurprisingly, those filing jointly will be able to make a little more, before they’ll be moved from the 10% bracket to the 15% bracket.
As a single, you will be required to pay 10% if you make $9,275 or less. You will pay 15%, if you make anywhere between $9,276 and $37,650. It is essential to figure out which bracket you fall in, so you can pay the correct amount.
Consumers are required to fill out and submit their taxes each year, unless they earned no money whatsoever. Remember that there is deadline for this. In general, the deadline usually falls in the middle of April. In some cases, it may be possible to obtain an extension, but it is generally best to make sure that taxes are filled out and submitted well ahead of this date.
This day is usually referred to as Tax Day. In 2017, it will fall on Tuesday April the 18th. In 2018, the deadline will be April the 17th.
At the end of the day, all Americans that make money in the United States will be required to obey the IRS tax law. Be sure you pay your taxes or you may face severe consequences in the future!