Question

What is a tax audit? What are some different types of audits?

Answer 1

Explanation:

1. What are some strategies that you can use to prepare to file taxes each year? What would be the benefits of these strategies?

2. What are the benefits of taxes for societies and individuals?

3. How do taxes influence responsible financial planning? Discuss some examples of how taxes may influence a financial plan.

4. What are four types of taxes that you pay (or are likely to pay in the future)? Describe these types of taxes.

5. Find a tax return form and practice filling it out, using either your own information or that of a hypothetical person. What are some of the challenges in filling out a tax return?

Answer:

1. Some strategies that can be used to prepare filing taxes each year have all your receipts kept to make that adding up easier. You would benefit from this because not only have you already prepared ahead but you were able to do your taxes easier.

2. Benefits of taxes for the society and individuals include, being able to get money in return of doing your taxes.

3. Taxes can influence responsible financial planning by helping reduce tax liabilities. Keeping up with taxes and making sure they are done correctly, in a timely manner can really help.

4. Four types of taxes that you'll pay include: federal, state, individual, and local income tax.

5. Some of the challenges I found filling out a tax return included: not entering the correct details, putting down the wrong income, mismatching important information, not calculating deductions correctly, etc.....

Answer 2

The answers are the following:
1.A tax audit is when the IRS decides to examine your tax return a little more closely and verify that your income and deductions are accurate.
2. Compliance audit.
Construction audit.
Financial audit.
Information systems audit.
Investigative audit.
Operational audit.
Tax audit.
3.Estate taxes are taxes levied on a person's estate when that person dies. To do this, the government takes the market value of the person's property, investments, and other parts of the estate and imposes a tax on the overall estate value. The government also imposes an inheritance tax on property or assets that are passed on after someone has died and bequeathed the assets to another
4.If you have experience dealing with taxes, tax forms are available online and at the library or post office for you to complete yourself. (This is time consuming) If you aren’t too sure on how to do taxes, you can buy the software or go online. Lastly you could hire someone to do your taxes for you.
5. At the core, taxes are the mechanism by which a government is funded. Taxes pay for public education, public transportation, law enforcement, and to build public roads
6. If you make too much money than your income tax could be very high or if you don’t make enough and the tax is the same for everyone you could find yourself in a hole.7. -Income Taxes: Levied on the amount of money that each person earns during a calendar year. There may also be federal, state/province, and local income taxes depending on where they live.
-Excise Taxes: A federal and/or state tax on specific goods such as gasoline, tires, airfare, and cigarettes.
-Estate Taxes: Taxes levied on a person's estate when that person dies. Inheritance Taxes: A tax on property or assets that are passed on after someone has died and bequeathed the assets to another8.  If you’re going to do your own taxes make sure you know what you’re doing.