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Definition of 'Taxpayer'

A taxpayer is an individual or entity that is required to pay taxes to a government. The amount of tax that a taxpayer owes is based on their income, assets, and other factors. Taxpayers can file their taxes on their own or with the help of a tax preparer.

There are a number of different types of taxes that taxpayers may have to pay, including income tax, property tax, sales tax, and excise tax. Income tax is a tax on the money that a person or entity earns. Property tax is a tax on the value of real estate. Sales tax is a tax on the sale of goods and services. Excise tax is a tax on specific goods or services, such as gasoline or alcohol.

The amount of tax that a taxpayer owes is determined by a number of factors, including their income, assets, and family size. The tax rates for different types of taxes vary depending on the jurisdiction. Taxpayers may be able to claim certain deductions and credits to reduce the amount of tax that they owe.

Taxpayers are required to file their taxes on a regular basis. The due date for filing taxes varies depending on the type of tax and the taxpayer's filing status. Taxpayers who fail to file their taxes on time may be subject to penalties and interest.

The IRS is the federal agency responsible for collecting taxes in the United States. The IRS has a number of resources available to help taxpayers understand their tax obligations and file their taxes correctly. These resources include the IRS website, the IRS toll-free help line, and IRS publications.

Taxpayers play an important role in the financial well-being of the government. The taxes that they pay help to fund government programs and services, such as education, healthcare, and infrastructure. By understanding their tax obligations and filing their taxes correctly, taxpayers can help to ensure that the government has the resources it needs to provide these important services.

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