Tax Law and Accounting

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Tax Law and Accounting
As much as everyone hates the “T” word, taxes are an essential part of our society. Taxes pay for many of the services we are entitled to as citizens of the United States. Services like the military, Medicare, and welfare are all paid for with tax dollars. Taxes often fund things that stir up quite the controversy because of the service provided, but they are important nonetheless. There are different levels of taxes as well. There are Federal taxes, which cover what was mentioned above. There are state taxes that cover services on a state level, such as highway’s and state parks. Then there are local city taxes that pay for emergency services and local recreational parks. There is not a day that goes by that American’s do not see their tax dollars at work, but yet, people do not want to pay taxes. No nation can stand and succeed without an efficient taxation system.

Here in the United States, we have a very complex tax system. To monitor the taxes, we have the Internal Revenue Service (IRS). The job of the IRS is to make sure all the tax laws are followed and enforce the laws. The three letters IRS scare every citizen in the United States because of the power they have. A person can fill out every form right, file correctly every year and still worry about the potential IRS tax audit. As time goes on and the Federal deficit grows, there is always more fear of audits, especially if they have large returns coming back to them. The best line of action an individual can take is to dot their I’s and cross their T’s and save all back up documents for 7 rolling years and keep them together.

Tax laws change on a very frequent basis. These changes can be to add to existing tax laws or to take away from existing laws. An example of these changes was seen very recently. When the housing market “crashed,” many people lost their houses and this caused potential buyers decided to keep renting for a variety of reasons. To counter act this, the...
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