Businesses are subject to different tax rules than individuals from "summary" of Income Tax Fundamentals 2021 by Gerald E. Whittenburg,Martha Altus-Buller,Steven Gill
Businesses must follow a distinct set of tax regulations compared to individuals. These rules are tailored to the unique circumstances and operations of businesses, taking into account their revenue, expenses, and overall structure. For instance, businesses are required to report their income, deductions, and credits on a different tax form than individuals. This separation allows the Internal Revenue Service (IRS) to properly assess and collect taxes from businesses in a systematic manner. Moreover, businesses are subject to specific tax rates that may differ from individual tax rates. The tax rates for businesses are designed to reflect the different financial obligations and responsibilities that come with running a business. Additionally, businesses may be eligible for certain tax deductions and credits that individuals are not entitled to. Thes...
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