United States tax law refers to the body of legal rules and regulations that govern the imposition and collection of taxes within the United States. It encompasses a comprehensive set of guidelines and provisions established by federal, state, and local authorities to define the obligations and responsibilities of individuals, businesses, and organizations in relation to taxation.
The U.S. tax law is primarily based on the Internal Revenue Code (IRC), a federal statute that outlines the federal tax system. It encompasses various provisions addressing income tax, estate tax, gift tax, corporate tax, and other forms of taxation. The IRC also establishes the Internal Revenue Service (IRS), a federal agency responsible for administering the tax law, collecting taxes, and enforcing tax regulations.
United States tax law includes regulations that outline the determination of taxable income, allowable deductions, tax credits, tax rates, and tax filing requirements. It establishes the legal framework for the assessment and collection of taxes, including penalties for non-compliance or tax evasion.
State and local tax laws may also create additional tax obligations that individuals and businesses must fulfill within their jurisdiction. These laws vary from state to state and may include income taxes, sales taxes, property taxes, and other forms of taxation.
United States tax law is subject to regular updates and amendments through legislative actions, such as acts of Congress or administrative regulations issued by the IRS. Taxpayers are expected to remain informed about tax law changes to ensure compliance and fulfill their tax obligations accurately.
