Why do we pay taxes?

Why do we pay taxes? It is the law. Anyone who receives income, resides in the United States and meets certain requirements is required to file a federal tax return and pay taxes owed.

Are there penalties for not paying taxes?

Yes. Non payment of taxes can subject you to civil and criminal penalties.

How does the federal government spend the taxes collected?

Federal taxes supply the funds necessary to meet the nation's budget, and benefit every individual who resides in the United States.

What is taxable income?

Income you receive from wages, self employment, tips, sale of property, etc., is considered taxable income and subject to reporting on income tax forms.

Does my immigration status in this country determine whether I must pay taxes or not?

No. The obligation to pay taxes does not depend on your immigration status, but rather, on your income.

Can I obtain assistance in Spanish on filing requirements; who must file and who must pay taxes?

You may call the IRS and obtain information by telephone at 1-800-829-1040.

What rights do I have?

The IRS (Internal Revenue Service) provides information on taxpayer's rights (Publication 1), how to appeal an IRS decision (Publication 5), and the collection process (Publication 594). For more information, call the IRS by telephone.

What other benefits might be obtained from filing and paying taxes?

When you file your tax return and pay taxes owed, you are complying with the law, and are benefiting yourself.

• A filed tax return may assist you in establishing the length of time you have resided in the United States.
• Financial institutions may require copies of federal tax returns in transacting purchases of property, automobiles or real estate.
• Educational institutions require copies of federal tax returns when processing financial assistance to taxpayer's children who may qualify for financial assistance for higher education.