The taxation department of every nation hands out a set of checks as tax relief every year.These checks are basically issued to people who apply for tax exemption, under some or the other relevant provisions of tax laws. The following article is brief elaboration of these tax exemption checks. Keep reading to know more…
Tax is a fee that is levied by the government in order to fund people’s welfare. There are two basic types of taxes, namely, direct tax and indirect tax. Direct tax is usually paid by the citizens to the taxation authorities. Income tax is a prominent example of direct tax. The direct taxes are paid to the government authority with the help of, the ‘tax return’.
The indirect taxes are not directly levied to tax payers. Taxes such as the sales tax or excise duty are paid by manufacturers of goods. These taxes are recovered by the producers during sales, and are then forwarded to the tax departments. Theoretically, any type of transaction is taxed by the government. Before we try and understand the practice of issuing checks for tax relief , let us first grasp the terminologies of tax relief and tax burden.
Tax Burden and Tax Relief
Tax burden, which is also referred to as a tax liability, is the amount of tax that every citizen and organization is expected to pay to the government, every annum. The tax is usually submitted to taxation agencies and departments that are empowered by the government to collect tax. In case of the United States of America, the tax is collected by the Internal Revenue Service, abbreviated as IRS, which is a branch of the United States Treasury Department. The IRS is also empowered to enforce Federal Tax Laws and Internal Revenue Laws. The term tax liability is an extension of the term tax burden and means the tax that has not been paid or is payable. Tax liability is also known as tax debt in some cases.
Tax relief, in contrast to tax burden and tax liability, is used when tax of any form is exempted by the government. Some of the recent enactments that govern tax relief in the United States of America, include the Economic Growth and Tax Relief Reconciliation Act of 2001, and Mortgage Debt Relief Act of 2007. The concept of tax relief is complex, as there always a debate regarding the terms and specifications, that qualify the person for the same. In the decade where economic recession stepped into world economy, United States Treasury Department mailed various exemption checks to individuals and couples.
FAQs about Tax Relief Checks
There are several queries and questions regarding these checks. Some of them have very practical answers and solutions.
Q: What are Tax Relief Checks?
A: The checks that are mailed by the IRS and the United States Treasury Department to taxpayers based upon their income. These checks are also known as rebate and can be encashed. The tax rebate checks are issued on the basis of current and previous year’s income and tax assessments.
Q: How to Check on Tax Rebate Checks?
A: It is very easy to check on the tax relief check. After consulting the tax calculator, payroll taxes and tax deductions, you can visit the IRS website and refer to the terms that qualify you for the refund or rebate. However, in case of property tax relief that are connected to property and mortgage law, you will need to take sound tax advice from a tax attorney or lawyer.
Q: How to Track your Tax Relief Check?
A: Any person can easily check the status of his tax relief check by visiting the IRS website. One needs to submit information regarding social security number, filing status and Dollar amount of refund.
Tax rebate checks are issued by the government in order to reduce the tax burden and liability. There has been much criticism of this concept, however, the phenomenon of issuing checks for tax relief has greatly helped many people.