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Importance of Filing Tax Returns

There are four basic taxes. When it comes to property taxes, you have to surrender a certain portion of the value of your property to the government. With income tax, a certain amount is deducted from your salary; you should note that the poor are not expected to pay this type of tax. When goods and property from an estate are sold and the money paid to the government, it becomes estate tax. Consumption taxes are paid when products and services are purchased when goods are imported into the country, or through tolls for roads and bridges. It is important to note that consumption taxes are easier to collect than income taxes, even though they require extensive recording and auditing. There are taxes that are levied to discourage the consumption of some items. The government may impose sin taxes to ensure the citizens do not use alcohol, tobacco, or prostitution that much. Generally, their consumption is not fit for human health.

There should be a source of funds in order for the government to ensure that the people in the community get services; that is where taxes come in. Every community should have clerks, administrators, firefighters, and maintenance workers to ensure that there is a smooth running in the community. There is no way that these people can work without being paid. Regressive tax is one that has a greater effect on the poor more than it has to the wealthy. On the other hand, the taxes that affect the wealthy people more than the poor are termed as progressive.

You should ensure that you file your returns to avoid disappointments when in need of a loan. It is important to note that most banks ask for the copy of the tax returns. Moreover, the copy can be of help especially if your loan application is rejected. Besides, you will be in a position to get the loan you want if you have a copy of the tax returns. If you want some refund, you should be able to show a copy of your tax return; thus, it is necessary to ensure that you file your returns within the expected time.

It can help you during visa processing. Before going for the visa interview, you should ensure that you have all the receipts showing your tax files. You should be prepared to show your tax receipts for the last three years or your most recent certificate, when you visit some embassies. The receipts shows that you have some income. It is important for the citizens to ensure that they pay their taxes because it comes back to them when they receive quality services from the government.

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