Tax Planning

 

The Internal Revenue Service (IRS) is the federal taxing authority in the U.S.  Tax Planning  The United States has a voluntary reporting system that permits either electronic or hard-copy filing of individual tax returns. All countries have agencies that oversee national tax collection. Some tax agencies provide individual taxpayers with pre-filled individual tax returns, while others require the taxpayer to fill out and file the returns on their own. Direct tax is a tax that is calculated and paid directly on your Income e.g. tax on salary etc. Income tax is a direct tax. Indirect tax is a tax that is indirectly charged to you on purchase of goods or use of service e.g. Buying a mobile phone or eating in a fast food joint. The seller of the mobile phone or the fast food service provider charges you tax and then deposits the same to the Government account. Most indirect taxes are now covered under Goods and Services Tax (GST).