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Simple English definitions for legal terms
IRC
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A quick definition of IRC:
IRC: The Internal Revenue Code is a set of laws that governs how the government collects taxes from individuals and businesses. It tells us how much we need to pay in taxes, when we need to pay them, and what deductions and credits we can use to reduce our tax bill. It's like a rulebook for taxes!
A more thorough explanation:
The Internal Revenue Code (IRC) is a set of laws that governs the taxation of individuals, businesses, and other organizations in the United States. It is also known as the federal tax code.
For example, if you earn income from a job or investments, you are required to pay taxes on that income according to the rules outlined in the IRC. The IRC also includes provisions for deductions, credits, and other tax benefits that can help reduce your tax liability.
The IRC is a complex set of laws that can be difficult to understand, even for experts. However, it is important to have a basic understanding of the IRC if you want to comply with tax laws and avoid penalties.