| Taxes are compulsory charges or levies collected | | | | these taxes, or the IRS could do it. |
| by states or anything that functions like a state. | | | | The form has one page, which everyone has to |
| In a modern society, taxes are usually levied in | | | | complete, and nine supplementary forms, which |
| money. Taxes have always been gathered in one | | | | people with specific types of income have to file. |
| way or the other. Tribal governments used to | | | | There is also a supplementary booklet that helps |
| collect taxes either in the form of labor, produce | | | | to file taxes. |
| or even gold. | | | | You are expected to file returns if you are |
| In the past, taxes have sometimes funded wars | | | | self-employed, have other income received in |
| or projects. In the modern context, taxes are | | | | gross and from which taxes have not been cut, |
| essential to help a country build infrastructure, | | | | such as rental income from property, interest in a |
| offer education, maintain law and order, finance | | | | national savings income account, etc. Returns |
| economic structures, roads, administration, | | | | would also have to be filed if the taxation rate is |
| defense, etc. | | | | high or complex. |
| In 1913, President Woodrow Wilson set up the | | | | Sometimes the IRS many issue tax return forms |
| Federal Income Tax. This income tax system | | | | to you even if you pay taxes under PAYE. This |
| deducted about 1% to 7% of a person?s income. | | | | happens if you have changed jobs and it is to |
| Ever since then, new taxes have been added, and | | | | check if your taxation is in order. |
| after World War I, the American Tax Code has | | | | Always file your tax returns if you know that the |
| become four times bigger. | | | | correct amount of tax has not been paid on your |
| In America, citizens who earn above a certain | | | | income. Do not wait for the IRS to send you a |
| level are expected to file tax returns, and pay | | | | tax return. If you fail to do so you may pay a |
| taxes if applicable. You are not expected to file | | | | fine or incur a penalty. Several people have gone |
| returns if you have salaries and pensions taxed | | | | to prison for failing to file their taxes correctly. |
| under Pay As You Earn (PAYE). This is because | | | | Send your tax returns back to the local tax office |
| the correct amount of tax is being deducted at | | | | by January 31st after the end of the tax year; |
| source. | | | | otherwise you will automatically incur penalties. If |
| Tax returns are essentially forms given by the | | | | you want the IRS to do the tax calculations, you |
| Internal Revenue Service (IRS) in which all the | | | | must send the completed return to the local tax |
| details of income and incurred expenses have to | | | | office by September 30th following the end of |
| be given. The taxes that you have to pay are | | | | the tax year. |
| calculated based on this. An individual can calculate | | | | |