Government_Ch5_IRS

=**Internal Revenue Service (IRS)**= Each year citizens must file their taxes. Businesses also must do the same thing. If anyone tries to cheat on the amount to be paid or tries to not pay their taxes, then the IRS can conduct an audit. This is the agency that enforces tax laws. There are certain deductions that citizens can file for to get money back from taxes paid. Sometimes deductions are called loopholes. There are numerous deductions. The most popular ones are being a first time home buyer, making a purchase that makes your home more energy efficient, dependent children (Mr. Hill gets this one times 2!), adopting a child, charitable contributions, purchasing an electric vehicle (not just a car - golf carts count!). Usually the wealthy have more opportunities for deductions. Many conservatives favor a flat tax - everyone pays the same rate with no deductions at all - would not need a large IRS. Tax laws are very complicated, which is why businesses need accountants. Recently, there have been political discussions on simplifying the tax code.

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