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Collect Taxes

Definition

The process of gathering or accumulating taxes from citizens by a governing authority.

Analogy

Collecting taxes is like a teacher collecting homework. Everyone has to turn in their assignment (taxes) so that everyone can benefit from the learning experience (public services).

Related terms

Internal Revenue Service (IRS): The U.S. government agency responsible for tax collection and tax law enforcement; think of them as the strict teacher who makes sure everyone turns in their homework on time.

Tax Evasion: Illegal practice where an individual, corporation, or organization intentionally avoids paying their true tax liability; this would be like trying to sneak out of class without turning in your assignment.

Tax Return: A form(s) filed with a taxing authority that reports income, expenses, and other pertinent tax information; it's like filling out a detailed report about how you spent your time studying for an exam.

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AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.