Who is the federal government forbidden to tax?

Answer 1

Remember that the Government in the United States is of the People, for the People, and by the People. The Government is not supposed to be this all powerful being that makes up the rules as they go along. The Federal Government is not forbidden to tax anyone. In the development of the tax rules and regulations we do not tax certain groups such as poor people unable to pay taxes, non-profit organizations designed for the public good, other governments such as States and Cities, and certain properties of religious groups that are non-profit. While these groups themselves are not taxed, those who work for these groups and receive pay for work are taxed as any other citizen. These groups are required to file financial returns and to file documents to obtain and maintain this status.

Answer 2

You do NOT very many things that would be nontaxable income.

One would be up to the 13000 gift exclusion amount from one family member to another family member and neither one would have to report the qualified gift as income or would it NOT be subject to the gift tax on the their income tax return in year 2009 or the year 2010.

For some information go to the IRS gov website and use the search box for Publication 525 Taxable and Nontaxable income

Answer 3

Exported Goods