Different tax assessment models are developed and used to
determine whether taxpayers are paying the correct amount of money each tax
season.
In every country, there is usually a department responsible
for determining the tax liability of an individual or group. The department in
the United States
with this responsibility is the Federal Board of Revenue.
The Board’ Provisional Tax Assessment Model will be used to
determine the tax liability of undocumented and wealthy persons who are
currently not paying taxes. Those individuals who are thought of as wealthy tax
evaders because they fit a profile set up by the board will be targeted by this
assessment model.
This method uses the spending patterns of these individuals
to determine their tax liability. For example, the tax assessment model will
examine foreign travel and bank account transactions to determine tax.
Plan for this year’s tax season with these tax return preparation tips.
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