Tax Law Basics

Taxes are a fact of life in the United States, and the complex field of tax law governs the many different requirements, exemptions, penalties, and other rules for enforcement of taxation. Federal, state, and local governments tax individuals and corporations on everything from wages and profits to personal property and sales. Not surprisingly, the tax code is unreasonably complex, but of course, taxpayers are still expected to abide by all of its myriad rules. Taxes are typically collected in a pay-as-you-go fashion, and failure to comply with tax code provisions or immediately pay all required assessments can, in some cases, result in collections activity and even criminal penalties for tax evasion. For more information, refer to the tax articles and answers in this section.