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A Quick Guide to the Internal Revenue Service

Internal Revenue Service

The Internal Revenue Service, or the IRS, is a government agency of the United States that collects state and income taxes from people and businesses. Generally, people pay their taxes once a year to the IRS. The process of paying taxes is known as filing taxes.

This is completed by filling out certain forms and paperwork that are created by the IRS and are expected to be turned into the government no later than April 15th of every year. As a section of the Department of the Treasury, the Internal Revenue Service calculates tax rates based on a sliding scale, allowing those who make more or less income to pay accordingly.

For individuals who receive a pay check, the Internal Revenue Service takes out an estimated tax amount per check. If filed correctly, and timely, a refund may be granted due to the estimation of the IRS being incorrect. However, if the estimation is incorrect, and an individual owes money to the government, they must pay the Internal Revenue Service in a prompt manner.

The tax is based off of net income, which is the amount one receives after all other deductions are made. If in individual falls below the poverty line, they may not be required to pay an IRS tax at all. For those who make a large amount of income annually, may choose to write off some portion of their income as tax write-offs. Due to this, the middle class generally is the high contributors of the IRS tax.

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