Explain the way tax payments differ from other payments that people or organizations make to governmental agencies.
Explanation of Solution
The Tax: As defined by IRS the tax is “an enforced contribution, exacted pursuant to legislative authority in the exercise of the taxing power, and imposed and collected for the purpose of raising revenue to be used for public or governmental purposes. Taxes are not payments for some special privilege granted or service rendered and are, therefore, distinguishable from various other charges imposed for particular purposes under particular powers or functions of government.”
As defined, the tax payments are mandatory payments from all eligible taxpayers mobilizing revenue for the government, for its use for the public as a whole. Unlike any fines and penalties that are punishable act by the government, tax payments are made to meet the tax obligations by the taxpayers. Unlike fess, like driving license fee or stamp duty, the tax payments cannot be attributed to any specific cause or benefit. Tax payments differs from fees and other government payment, as it is compulsory and mandatory for the taxpayer to pay their tax due in time.
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Chapter 1 Solutions
PRINCIPLES OF TAXATION F/BUS.+INVEST.
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Pfin (with Mindtap, 1 Term Printed Access Card) (...FinanceISBN:9780357033609Author:Randall Billingsley, Lawrence J. Gitman, Michael D. JoehnkPublisher:Cengage Learning
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