Tax Code

Tax Code refers to the comprehensive set of laws and regulations governing taxation in a particular jurisdiction, typically established by the federal government, state legislatures, or local authorities.

In the United States, the primary source of tax laws is the Internal Revenue Code (IRC), which is a section of the United States Code. The Tax Code outlines various tax obligations, including income tax, corporate tax, estate tax, and more, detailing how these taxes are calculated, who must pay them, and the penalties for non-compliance.

For example, the Tax Code includes provisions for tax deductions, credits, and exemptions, which taxpayers can utilize to reduce their overall tax liability. Understanding the Tax Code is essential for individuals and businesses to ensure compliance and to optimize their tax positions.