federal tax issues

Federal tax issues involve how individuals and businesses are taxed by the U.S. government. The Internal Revenue Service (IRS) collects income tax, payroll tax, and other taxes. Key issues include tax rates, deductions, credits, and compliance with tax laws. Individuals must report their income accurately, while businesses face additional complexities like corporate tax rates and potential audits. Tax policy can change annually, affecting rates and eligibility for deductions. Understanding these issues is crucial for proper financial planning and to avoid penalties or legal issues related to unpaid taxes or inaccurate filings.