Posted in Finance, Accounting and Economics Terms, Total Reads: 291
Definition: Tax Code
Tax Code are documented guidelines for citizens or businesses of a country to follow laid down by the government, which must be followed while paying taxes. Taxes have to be paid to the government periodically depending upon the tax bracket one falls in. The tax code gives details of all regulations, methods, exemptions etc.
In addition, tax regulations are the U.S. Treasury department's official interpretation and understanding of the tax code. It is extremely crucial to understand the nuances of taxation and lack of knowledge of the same is not admissible in the Court in the case of a wrongdoing.
In the US, tax codes are revised every year and are updated by IRS for the ease of the people and businesses to refer.