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The tax return is a form provided by the IRS. The taxpayer uses this form to report taxable income, expenses, and other tax-related information. Individuals and companies with taxable income often submit a tax return annually, including their wages. The benefits and profits.
What are the sections of a tax return?
The tax return includes three main sections, each of which has its own definition and includes an explanation. The following is a description of each section separately, as follows:
Revenues
Revenues are divided into many types, and as is known, the types of revenues are diverse, including income, dividend returns, sales proceeds, etc. When filing a tax return, the taxpayer records all sources of his income. In some countries, capital gains, wages, dividends, and self-employment income may also be reported.
Discounts
A tax deduction is a deduction that reduces the tax liability of a person or organization by reducing taxable income, and deductions are usually expenses incurred by the taxpayer during the year that can be applied to him or deducted from his gross income to determine the amount of tax due. For individuals, these may include This includes contributions to retirement savings plans and the payment of spousal expenses. As for institutions, most expenses directly related to business activities may be deducted. After determining the amount of the deduction and adjusting the total income, the taxpayer calculates the new tax rate.
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Tax credits
A tax exemption is an exemption from all or some of the taxes imposed by the state, and tax exemptions are usually provided to individuals or organizations that fall into categories that the government wants to financially encourage, such as charitable organizations, where tax exemptions are usually aimed at reducing the tax burden imposed on certain parts of society with the aim of achieving justice or promoting certain economic activities by reducing the tax burden imposed on organizations or individuals participating in the activity.
What are the tax return procedures?
- The taxpayer submits the tax return to the Audit Department or the Tax Compliance Department.
- The auditor checks and signs the tax return information and forwards it to the alternate auditor for verification and research in the form of a form.
- The auditor transfers the transaction to the data entry personnel to do the tax return entry into the electronic document management system.
- The auditor checks the tax return and extracts a tax statement if there are balances, and if the taxpayer wants to pay, the employee issues an arrest warrant to the taxpayer to pay the amount owed by the fund.
- Taxpayers can submit their tax returns by mail.
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