Final answer:
The RIA Federal Tax Handbook is a secondary authority. It provides guidance on federal tax law, including how taxes are assessed and what other taxes may be due. The main function of the IRS is to enforce tax laws, which can be influenced by politics.
Step-by-step explanation:
The RIA Federal Tax Handbook is considered a secondary authority within tax law and practice. Unlike primary sources such as statutes and regulations, a handbook like this provides interpretation, clarification, and guidance on tax-related matters. It compiles, explains, and offers insight into the administratively and legislatively created rules governing the assessment, collection, and enforcement of federal taxes.
Federal income taxes are assessed based on an individual's or entity's taxable income. The Internal Revenue Service (IRS) determines the amount of tax owed by applying tax rates to this income, which may vary depending on factors such as filing status and income levels.
In addition to federal income taxes, individuals and businesses may be subject to other types of taxes, such as payroll taxes, excise taxes, estate taxes, and sales taxes, which are levied by both federal and state governments.
The main function of the IRS is to administer and enforce the nation's tax laws, collect taxes, process tax returns, and pursue taxpayers for unpaid taxes.
Politics can significantly influence tax laws, as changes in political leadership and ideologies often lead to alterations in tax policy and legislation.