YOUR TRUSTED
TAX AND FINANCIAL EXPERT

United States Code Title 26, otherwise known as the Internal Revenue Code, is the codified set of federal tax laws. In 1862, the nation’s first income tax was enacted into law to raise revenue to help pay for Civil War expenses. U.S. tax laws began to be codified in 1874, compiled in 1939, and overhauled in 1954 and 1986. This code is the definitive source of all tax laws in the U.S. and it determines the rights and legal obligations that are recognized by the courts of justice. These laws are administered by the Internal Revenue Service through Treasury Regulations and Revenue Rulings. 

Internal Revenue Code sections 7201 through 7217 codify the activities, both misdemeanors and felonies, that are illegal under the U.S. tax laws. The most common tax crime is tax evasion – failure to pay taxes, failure to report taxes, and failure to report taxes accurately.

Click here to view the Taxpayer Bill of Rights. This publication explains a taxpayer’s rights and the processes for audit, appeal, collection, and refunds.

Marginal tax rate is the highest tax rate at which your taxable income is subject to tax. For example, if you are single and your taxable income is $600,000 in 2023, your marginal tax rate is 37%. Not all of the taxable income is taxed at 37%; only the portion subject to the highest rate is taxed at 37%. 

Effective tax rate is your total tax divided by your total taxable income. In the same example, the effective tax rate is 29.53%. The effective tax rate is lower because the United States has a progressive tax structure.  The taxable income is segmented and each segment is taxed at different rates; higher income segments are taxed at progressively higher tax rates.

Click here to correctly estimate and withhold your tax for the year and avoid penalties.

If you are filing a tax return, you may minimize your taxes through tax deductions and tax credits.

If you have not filed a tax return or paid tax due, you may be able to minimize your overall taxes and fees by engaging a tax professional experienced in tax representation matters such as an offer in compromise and partial payment installment agreement.