Federal Income Tax Act

The Federal Income Tax Act is the law that governs how the U.S. government collects taxes on individuals' and businesses' income. It sets rules for determining taxable income, establishes tax rates, and outlines deductions and credits that can reduce tax liability. The act ensures a standardized process for reporting income and paying taxes, helping fund government programs and services. Essentially, it provides a structured framework for ensuring everyone contributes their fair share to the country’s financial needs through income taxes.