IRS rules for Tax relief and collection of tax A financial charge imposed on the taxpayer by the government is called Tax. Failure in paying it is punishable by the law. Administrative divisions also impose taxes. They can be of two types either direct or indirect. They can be paid by money or by equivalent labor. It is a burden on the individuals so as to support the government. It is not a voluntary contribution or any kind of donation but is a compulsory act. Sometime there are those taxes which are not paid and are owed from a prior year. Such taxes are called back taxes. Types of taxes •Tax on income •Social security contributions •Inheritance tax •Tax on payroll and enforce •Tax on property •Tax on goods and services •License tax •Poll tax •Tariff •Fees and effective taxes •Others Escape from tax One can get the write-offs and tax breaks that decreases the tax amount or provides concessions to the tax payers. It could be granted at local or state levels. The government provides relief from tax to its citizens. It is targeted to individuals or businesses in case they need financial breaks but is not for multimillionaires. There are several reasons why a person needs it. These could be personal reasons due to which an individual is not able to pay it. Some people find it hard to manage taxes from their limited salary. Hence there is a wide variety of tax breaks and deductions. In order to get advantage of the Tax relief program one should fulfill all the requirements for the same. Mostly it is granted to those who are victims of natural disasters like those who have lost their jobs, business or homes in any kind of natural calamity. Tax collection tools The IRS has various tools for the collection of tax in case someone does not pay it. Federal tax levy is one of them. There are further two types for the same. These are wages or bank account levies. In wage levy the IRS has the right to garnish your wages, retirement income or social security benefits. It is served on the employer who pays a larger percentage of money to the IRS in order to clear the tax due. In bank levy the IRS has the right to withdraw all money in your account on your name if you do not pay the tax. Be careful ! Various Tax resolution companies are there assuring you help if you are a struggling taxpayer. They will charge high for seldom resolving anything. They are a growing industry these days and causing serious
problems to the consumers. They publish fake advertisements of tax relaxation for a limited time period. The IRS does not offer such kind of programs. There are several other ways of relief from taxes but those who do not have that much knowledge get easily trapped in their fake promises. Such firms earn from those funds which could otherwise have been useful for the government. This article gives a brief introduction about the tax. Also it tells about IRS rules regarding tax relief and scams in the market. Types of taxes and collection measures taken by the government are also being described.