Essay About Tax Law And Required Tax Payments

Llaw110 Income Tax Case
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Today, my topic is the tax law for the restaurant. First of all, we have to understand what are the taxes. Taxes are the compulsory contribution to the state revenue, and they are levied by the government from workers’ salary and business profits. Why the government have to collect the taxes? First, the government have to pay for the salary of government workers. Second, the government uses it to support the common resources like firefighters and police. Third, the government uses it to fund the public facilities such as public libraries and parks.Why I choose this law? There are two reasons. First is liable. As restaurant owners, we earn money from the society, so we have to repay society. Second is penalty. If we do not make the required tax payments to the state, our business will be charged a penalty.Next, taxes can be divided into two categories. The first is direct tax, the second is indirect tax. Direct tax is the tax on income and property, while the indirect tax is the tax on consumption and expenditure.As for the direct tax, I would talk about the income tax that is related to my business. In general, there are three normal types of the business, sole proprietorship, partnerships, and corporations. The ways they calculate and pay the income tax are totally different. Because my restaurant is organised as the partnerships, I would just talk about how partnerships pay the income tax.As a partnerships business, income from my restaurant is passed through to the owners and taxed on individual level. Although as a partnership business, we are not required to file an actual federal tax return, the IRS requires us to file an information tax return, which is Form 1065, this form demonstrates the payments made to each partner or member. We then fill out a 1099-K form for each individual to report individual income. The partner or member then uses this form, schedule E and form 1040 to calculate personal income tax.