Taxes The Texan Way

Taxes the​ Texan Way
There is​ an​ adage that claims that the​ only things certain in​ life are taxes and deaths .​
One could presume that tax laws are as​ easily determined and understood as​ one identifies death .​
When a​ person stops breathing and his brain stops functioning,​ he's dead .​
However,​ this is​ not the​ case with taxes .​
There is​ nothing easily understood,​ clear,​ and simple when it​ comes to​ tax laws .​
Thus,​ more tax troubles ensue not because of​ disregard for the​ tax laws but because of​ misinterpretation and misunderstanding of​ the​ laws .​
Tax collectors,​ indeed,​ have very taxing jobs .​
Aside from collecting taxes from people who do not want to​ part with their hard-earned money,​ they also have to​ ensure that these people pay their fair share .​
Fortunately,​ Texas taxes,​ Texas tax laws,​ and policies are one of​ the​ lowest and manageable among the​ states .​
There is​ no magic in​ this; Texas simply does not charge income tax for state purpose .​
As a​ result,​ Texas taxes are not managed by the​ CPA of​ the​ state but the​ IRS.
This instance does not mean that Texas tax laws are lax and lenient .​
There are still several key events that tax collectors and auditors regularly deal with regarding Texas taxes .​
For one,​ there is​ the​ matter of​ tax evasion .​
Though used interchangeably with tax avoidance,​ there is​ an​ essential difference between the​ two that makes evasion a​ crime .​
Tax avoidance simply merits finding loopholes in​ Texas taxes,​ Texas tax laws,​ and policies,​ and using these to​ lower tax burdens by legal means .​
This ensures that the​ individual pays the​ least amount of​ tax as​ legally possible .​
Though this may cause tension between the​ collector and the​ taxpayer,​ this is​ something that can be easily settled with an​ audit .​
If the​ audit confirms that all tax deductions are valid,​ the​ taxpayer can get away with his minimum tax .​
However,​ if​ the​ audit proves otherwise,​ and the​ taxpayer was found out to​ have employed unlawful means to​ evade paying taxes such as​ under-declaring income,​ he could be charged with tax evasion .​
The legality of​ the​ methods used to​ lower taxes is​ the​ difference between the​ two.
Even if​ they lack state tax,​ Texas taxes,​ Texas tax laws,​ and policies require that the​ IRS conduct regular audits .​
These audits ensure that the​ taxpayers honestly meet their obligations .​
These are done in​ three ways,​ and the​ most employed is​ randomization .​
In this method,​ the​ IRS randomly selects income tax files from the​ submitted returns .​
Since there is​ a​ probability and a​ chance that they would be evaluated,​ taxpayers are driven to​ be honest with their tax information,​ thereby,​ limiting tax evasion cases .​
The second method employs a​ computer program used to​ spot evasion patterns which are prevalent among tax evaders .​
Evasion patterns such as​ unusually large allowances for entertainment are red-flagged .​
Individuals who are repeatedly tagged for the​ same pattern are investigated.
Thus,​ even if​ Texas does not have state income taxes,​ stringent Texas taxes,​ Texas tax laws,​ and policies,​ ensure efficient tax collection .​
Texans do not suffer from burdensome state taxes since the​ tax collection system employed in​ the​ state more than suffice for needs of​ Texas .​
Texas proves that added taxes are not guarantees for increasing state income.
Taxes The Texan Way Taxes The Texan Way Reviewed by Henda Yesti on July 03, 2018 Rating: 5

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