While audits are uncommon, most Americans would prefer to avoid them entirely. According to the IRS, the percentage of audited persons is relatively low, although it has gradually increased since 2008. If the IRS decides to probe your corporate partnership or individual taxes, there isn't much you can do about it. You may, however, lessen the likelihood of being singled out for this scrutiny by following the above tips.
When somebody provides you with a tax document that discloses income, like a 1099, that information is likewise reported...
The Progressive Tax System
Since it was first enacted during the Civil War, our income tax has been revised to use a "progressive" system. This is based on the theory that the national tax burden should be shared according to a taxpayer’s ability to pay.
Thus, low-income taxpayers pay lower taxes than high-income taxpayers. The difference is not just the total amount of tax. The tax per dollar of income increases with the amount of income. For everybody, the first dollar of income is taxed at the same rate. But as income...
