The Revenue Act of 1861 made the country’s first federal income tax go into effect. Before then, back in 1787 when the U.S. Constitution was adopted, the federal government was authorized to charge taxes but some forms of revenues via taxes were doled out to states depending on how well populated they were. Since these earlier times, myriad changes have been made to the U.S. tax system, including the 10 cent tax on playing cards that Alabama has enacted, and these changes would make the average U.S. taxpayer’s head spin.
For instance, tax rates on a federal level range from 10 percent to 39.6 percent of a person’s taxable income. That percentage hinges on many factors, which can confuse the living daylights out of U.S. taxpayers and lead to IRS problems. Many eventually end up getting help with IRS problems. When they have problems with IRS agencies on a state or federal level, these taxpayers largely seek assistance with their Irs tax problems by calling on CPAs or tax specialists. In getting help with IRS tax problems, these taxpayers usually end up saving themselves significant penalties.
A big Irs tax problem today for Americans is a tax levy, which is an action taken by the IRS under a statutory type of authority to seize a person’s property in order to satisfy what they owe in taxes. This is normally done out of court and is considered an administrative IRS action. To avoid these IRS problems, help usually is called upon.