Federal Tax Definition

[accounting lads]

Federal Tax Def refers to any tax levied by the American federal government such as income, payroll, corporate, excise and estate taxes. The most prevalent and which individuals and businesses are obliged to pay is the federal income tax where they are required to pay a percentage of their income to fund national activities. Federal taxes are administered by the IRS and support the necessary government activities and programs such as healthcare programs, social services, national defense, and transportation infrastructure. The federal taxes are not the same as the state and local taxes and they are controlled by different regulations. It is imperative that taxpayers abide by the federal tax laws by providing proper reporting, paying the necessary taxes and following the IRS provisions.

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