U.S. federal tax law

U.S. federal tax law dictates how individuals and businesses report their income and pay taxes to the federal government. The Internal Revenue Service (IRS) administers these laws. Generally, people pay taxes based on their earnings, with rates that can vary. There are different categories of taxes, including income tax, payroll tax, and capital gains tax. Deductions and credits can reduce taxable income or tax owed. Filing taxes typically occurs annually, and compliance is essential to avoid penalties. The law can be complex, often requiring professional guidance for individuals or businesses navigating their tax obligations.