| A | B |
|---|
| Money collected from citizens or businesses in the form of taxes | Revenue |
| Tax that takes a smaller share of income as the amount of income grows | Regressive Tax |
| Tax that takes a larger share of income as the amount of income grows. | Progressive Tax |
| Flat taxes for which the rate stays the same regardless of income. | Proportional Tax |
| What are the two major functions of the IRS? | Collect Taxes, Enforce tax laws |
| What body has the power to tax? | Congress |
| The willful failure to pay taxes. | Tax Evasion |
| Examination of tax returns. | Audit |
| Taxpayer sits down with the auditor to answer questions and produce records | Office Audit |
| IRS sends a letter asking the taxpayer to respond to specific questions or produce evidence of deductions. | Correspondence Audit |
| IRS agent visits the taxpayer to verify information or ask specific questions | Field Audit |
| All taxable income you receive | Gross Income |
| An amount you may subtract from your income for who person who depends on your income to live | Exemption |
| Money paid to former spouse for the support of dependent children, not taxable nor deductible | Child Support |
| Money paid to support a former spouse, taxable and deductible | Alimony |
| Types of spending you are allowed to subtract from gross income. | Adjustments |
| Expenses the law allows you to subtract from your adjusted gross income to determine taxable income. | Deductions |
| An amount subtracted directly from tax owed. | Tax Credit |
| By what date must you file your taxes? | April 15th |
| What type of form would supply you with the money you earned from wages, tips, and salary? | W-2 |
| Which type of form would supply you with the amounts you earned fronm interest, dividends, social security, and unemployment? | 1099 |
