Income Tax Return
What does Income Tax Return mean?
An income tax return generally refers to the annual forms filed with the Internal Revenue Service to calculate the tax liability owed by an individual or business. Tax returns are completed using forms published and maintained by the Internal Revenue Service to adhere to applicable income tax law. The most common form used for individual income tax returns is Form 1040 and the accompanying schedules.
When a tax return is submitted to the Internal Revenue Service, it should be completed fully and include any required supporting documentation as well as payment of any tax liability due. The Internal Revenue Service is then able to use the tax return to confirm the calculated tax liability is accurate based on the information provided and reasonable given the income level, occupation, and other information about the taxpayer. The Internal Revenue Service can also audit the return, performing a detailed review and even requesting additional information from the taxpayer.
Each year the Internal Revenue Service receives approximately 230 million tax returns.