The prospect of an IRS audit strikes fear into many. By gathering information about the process and reporting this information in an easy to understand way, you can assuage some of this fear. Research the procedure for an IRS audit, including how individuals are selected to be audited. Discuss ways in which individuals can prepare for an audit to reduce the hassle of this sometimes unavoidable event.
Explore the impact that an income bracket has on an individual's tax liability. Gather information on the current income brackets, comparing them to past income bracket levels. Explore the percentage of income due as tax for each income bracket. Comment upon the equity of the income bracket system and efforts that have been initiated to modify the system.
Deductions are a major money saver for many taxpayers. Research common and uncommon deductions. Report upon what taxpayers need to do to qualify for certain dedications. Discuss ways in which taxpayers can ensure that they take their maximum possible deductions, allowing them to keep as much of their earned money as possible.
The completion of taxes once required hours of toil and pencil pushing. Now many tax software options allow taxpayers to compute their taxes digitally. Research taxpaying software, gathering information on which programs are most commonly used by consumers. Discuss the pros and cons of each software option. Compare the cost of each software to determine which option is likely best for consumers.
Modern taxpayers can receive a tax benefit for engaging in Eco-friendly behavior. Research credits for which taxpayers can qualify by purchasing Eco-friendly cars, making environmentally sound home improvements or taking part in environmental programs. Discuss each credit independently, explaining what the taxpayer would need to do to qualify for the offered credit and how that action would benefit the environment.
Sales tax is complicated by online purchases. While many large retailers calculate and charge sales tax, some smaller retailers and online auction sites do not. Consumers are supposed to keep track of and report their purchases and include this unpaid tax when they calculate their tax debt. Explore the effectiveness of this practice, gathering information on the likelihood that taxpayers will faithfully keep track of and ultimately pay this tax. Discuss ways in which this process could be modified to increase the likelihood that taxpayers pay their sales tax.