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The American tax system: A complex, complicated program

On Behalf of | Aug 20, 2020 | IRS, Tax Law

If there is one thing that is clear, it’s that the American tax system is complex. It’s complicated to do your own taxes, and even those who train to do your taxes could find some trouble when working on them. In the U.S., the government requires you to figure out what you owe, and you have to determine if you have any right to credits or deductions.

Why are taxes so complicated in the United States? That’s not a simple answer. One thing that some professionals believe is that tax preparers want to make them more complicated to keep people coming to them for help. The other reason is because there is a significant amount of social policy done through the U.S. tax code. The U.S. also taxes households, not necessarily individuals, which makes the tax situation more complex for the average American.

The social policies that impact taxes may vary by year. For example, if the government wants to encourage Americans to spend money on homes, then they may give credits on their tax returns. Similarly, if the government wants to penalize certain behaviors, they may add fines or fees.

When you’re working on your taxes, you may find it difficult to know if you’re doing everything right. That’s not surprising, but it may mean that you end up facing the Internal Revenue Service and an audit that says you haven’t paid the right amount to the government.

If you find out that you are being audited, it’s smart to take steps to protect yourself. You may want to talk to your attorney about how to protect your best interests and prevent wage garnishments or other problems.