Power
Tax Relief excels at utilizing the Offer in Compromise process,
which is a credible means of resolving federal tax liabilities.
We are a licensed Tax
Attorney Firm to represent our clients before the IRS, State
and any other Tax authority. If you are under audit, involved in
the collection process or just have a tax notice you need help with,
we are able to represent you. |
Taxes are sometimes referred to as direct tax or indirect tax.
The meaning of these terms can vary in different contexts, which
can sometimes lead to confusion. In economics, direct taxes refer
to those taxes that are collected from the people or organizations
on whom they are ostensibly imposed. For example, income taxes
are collected from the person who earns the income. By contrast,
indirect taxes are collected from someone other than the person
ostensibly responsible for paying the taxes.
The person or other entity from whom a tax is collected (i.e.,
the nominal "taxpayer") is a matter of law. However,
who "pays" the tax (in the sense of who bears the
ultimate economic burden of the tax) is determined by the market
place and is found by comparing the price of the good (including
tax) after the tax is imposed to the price of the good before
the tax was imposed. For example, suppose the price of gas in
the U.S., without taxes, were $2.00 per gallon. Suppose the
U.S. government imposes a tax of $0.50 per gallon on the gas.
Forces of demand and supply will determine how that $0.50 tax
burden is distributed among the buyers and sellers. For example,
it is possible that the price of gas, after the tax, might be
$2.40. In such a case, buyers would be paying $0.40 of the tax
while the sellers would be paying $0.10 of the tax.
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