Tax laws explain the legalities of tax assessment and collection and have been established by governmental bodies at several levels. Tax laws can be enacted by the federal and state governments or by local municipalities. Most federal laws regarding taxes are listed in the Internal Revenue Code of 1986 and the Code of Federal Regulations. As changes are needed, the Internal Revenue Service, or IRS (I-R-S), may propose new tax laws to suit its needs and those of taxpayers. New tax regulations may also be established by decisions rendered in federal tax court. Federal taxes include personal and business income, gift, excise, employment, and sales taxes. Not only are there tax laws set forth by the federal government, but also by the governing bodies of states, counties, cities, or other municipalities. Similarly, regulations at this level are defined in codes or other official documents. Many states incorporate laws and regulations similar to those at the federal level, meaning that what the federal government taxes, the state taxes, and what constitutes deductions, exemptions, credits, or exclusions for federal taxes is true at the state level as well. Tax laws at the county or city level generally involve regulations regarding local sales taxes, property taxes, and use (yous) taxes. County and city tax laws may or may not be similar to those at the federal level. Though local governments may alter these rules and regulations, all laws must conform to those established at the federal and state levels.
©2006 Crossroads Mobile. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
