Federal Taxation

Federal taxation refers to the process by which the U.S. government collects money from individuals and businesses to fund public services and programs, such as education, healthcare, and infrastructure. Taxes can take various forms, including income tax, which is based on earnings; corporate tax, levied on company profits; and payroll tax, which supports social security and Medicare. The Internal Revenue Service (IRS) is the federal agency responsible for tax collection and enforcement. Taxpayers are required to file annual returns, reporting their income and calculating any taxes owed or refunds due.