Taxpayers

Taxpayers are individuals or other entities that are obligated to pay taxes to a government authority. Taxes can include income, payroll, sales, property, and other levies, and are used to fund public services and infrastructure.

Two broad categories of taxpayers are common: individuals, who pay personal income taxes and related withholdings, and corporate taxpayers, which include corporations and other legal entities that are liable for corporate income taxes. In some systems, estates, trusts, non-profit organizations, and specialized entities may also have tax obligations.

Key responsibilities for taxpayers include determining tax liability, filing tax returns, reporting income and allowable deductions and credits, and making timely payments. Many systems require withholding at source or making estimated payments throughout the year. Maintaining records and meeting deadlines helps avoid penalties and interest.

Taxpayers have rights and protections, such as confidentiality of tax information, the right to know and be heard, and the right to appeal or challenge assessments. They may be represented by tax professionals and are protected by due process safeguards during audits and collection actions.

Tax administration involves processing returns, assessing liabilities, issuing refunds, and enforcing payment. As tax systems evolve, digital filing and shifting compliance burdens influence the taxpayer experience and the design of policies aimed at equity and simplicity.