Taxpayer

A taxpayer is a person or organization (such as a company) subject to pay a tax. Taxpayers have an Identification Number, a reference number issued by a government to its citizens. A taxpayer is a person or organization (such as a company) subject to pay a tax. Taxpayers have an Identification Number, a reference number issued by a government to its citizens. The term taxpayer generally describes one who pays taxes. A taxpayer is an individual or entity that is obligated to make payments to municipal or government taxation agencies. Taxes can exist in the form of income taxes and property taxes imposed on owners of real property (such as homes and vehicles), along with many other forms. Most adults are taxpayers. Virtually every human being is a taxpayer at some point. People pay taxes when they pay for goods and services, which are taxed. The term taxpayer often refers to the workforce of a country who pays for government projects through taxation. The taxpayers' money are part of the public funds, which are all money spent or invested by government to satisfy individual or collective needs or to create future benefits. For tax purposes, business entities are also taxpayers, which means their revenues and expenditures are subject to taxation. The government levy income taxes on personal and business revenue and interest income. In addition to income taxes, the government can also mandate that employers subtract payroll taxes from their workers’ paychecks each pay period, and then match the sums deducted. Capital gains taxes are those paid on any profits made from the sale of an asset and are usually applied to stock and bond transactions. Estate taxes are imposed on the transfer of property upon the death of the owner. Property tax, sometimes known as an ad valorem tax, is imposed on the value of real estate or other personal property. Property taxes are usually imposed by local governments and charged on a recurring basis. Real estate taxes are often subject to fluctuation based upon a jurisdiction’s assessment of the worth of a property based on its condition, location and market value, and/or changes to the amounts apportioned to various recipients of the tax. The sales tax is most often used as a method for states and local governments to raise revenue. Purchases made at the retail level are assessed a percentage of the sales price of a particular item. Rates vary between jurisdictions and the type of item bought. Excise taxes are based on the quantity of an item and not on its value. User fees are taxes that are assessed on a wide variety of services, including airline tickets, rental cars, toll roads, utilities, hotel rooms, licenses, financial transactions and many others. So-called sin taxes are imposed on items like cigarettes and alcohol. Luxury taxes are imposed on certain items, such as expensive cars or jewelry.