The IRS And The Tax Code In A Nutshell

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The IRS And The Tax Code In A Nutshell
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• When Congress decides to make changes to tax
  rates, thats when they occur and the frequency
  at which this happens is hard to predict. Most
  recent changes were back in 2001, thanks in part
  to the Economic Growth and Tax Relief
  Reconciliation Act, which reduced tax rates for
  both individuals and businesses. So, Congress
  writes the tax laws, but the IRS are responsible
  for implementing them and helping to explain how
  the new rules can be applied to specific
  situations. Treasury Regulations and Revenue
  Rulings are the written regulations and
  procedures in which the new tax codes will
  appear, and they are almost four times as long as
  the tax code itself! Heres a little more about
  the relationship between the IRS and the tax code

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• How the IRS interprets actions made by Congress
• Based upon the actions of Congress, the IRS issue
  rules and regulations, and occasionally,
  temporary changes are made to allow for special
  credits or taxpayer deductions. One particular
  time when this might happen, is in the wake of a
  natural disaster or some other such occurrence,
  when an urgent need for economic relief may be
  there.
• How do the IRS communicate changes to tax rates?
• A bulletin is published by the IRS in the event
  of a change to tax rates, and such changes are
  also reflected in tax preparation software and
  are incorporated in the calculation of a
  taxpayers obligation.

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• Who enforces tax laws and regulations?
• Its the primary role of the IRS to do this, but
  while paying taxes isnt a choice, its a
  necessity, filing and paying income tax is
  essentially, voluntary. Confusing isnt it? The
  IRS allows individuals and businesses to
  calculate their own taxes and what they owe, but
  Title 26 of the U.S. code states very clearly
  that those taxes must be paid. However, every
  year thousands of Americans opt out of paying the
  taxes that they owe, and the IRS are usually hot
  on their tails and busy initiating collection
  processes. This begins with a bill sent by mail,
  and any failure to pay, file for an extension or
  set up an instalment plan results in collection
  agents sent by the IRS, arriving at your door to
  seize any assets that you might have.

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• If the IRS discover irregularities or errors in
  your tax filing, then an audit of your financial
  Records are usually initiated, with each taxpayer
  having the right to argue any final decisions
  made by the IRS, in a U.S. Tax Court.
• Those who are trying to exploit the tax system
  for criminal gains will be pursued rigorously by
  the IRS, and special agents working for the IRS
  Criminal Investigations division will do their
  utmost to unravel any unlawful tax avoidance.
• The tax code and the workings of the IRS may seem
  like a foreign language to you, in which case why
  not book a consultation with a tax professional,
  and have them explain it all in laymens terms to
  you?

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• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax preparation service
  Coral Gables. If you are looking for tax
  preparation service in Miami , Heyer Associates
  would be a right option.