The core of the American Economy evolves around taxpayers and what they do with the money owed. The stipulations of taxpaying, specifically Topic 206, 653, Publication 17 and Enforcement are all ethical. The IRS site makes all of the topics easy to understand as well as provides a simple yet in depth outline that gives the impartial stipulations for errors committed in the process of filing and claiming. For starters, Topic 206 discusses dishonorable payments. A dishonorable payment occurs when a check does not clear. First off, the topic states that the IRS does not submit checks. In addition, the IRS charges an additional fee on top of any charge a company may submit. For instance, one can be charged 2% the amount on the check, or a twenty …show more content…
In summary, this segment speaks on the deadline for filing tax returns as well as paying any tax owed. The stipulations are fair because they prevent error when filing returns and allow for the most efficient filing. For starters, the section defines interest as occurrent “on any unpaid tax from the due date of the return until the date of payment in full. It is determined quarterly and is the federal short term rate plus 3 percent”(Topic 653). Consequently, interest is fair so that it motivates taxpayers to pay on time and is kept at a fairly low rate so that debt is not accumulated too quickly. Interest is a motivator because it forces people to pay a minimum fee in exchange for not being charged extra. 3 percent is an acceptable rate for interest in that it is not overwhelming. Furthermore, the topic describes the late payments applied when not all of one's taxes are filed on time. As time progresses, tax is accumulated more bountifully. “The failure to file penalty is usually five percent of the tax owed for each month, or part of a month that your return is late up to a maximum of 25%”(Topic 653). In summary, as long as one pays bills within a reasonable amount of time, interest will remain low and not become overwhelming. Furthermore, the document describes any exceptions to the deadlines. Exceptions are made in the case of Resident Aliens, Veterans, and Natural Disaster Scenarios. In all, this segment is ethical because every taxpayer has the capability to keep interest low as well as maintain notices and payment schedules. Similar to the last topic, there are opportunities to plea for an