Tax season is the time where all the taxpayers and tax-exempt organizations are obligated to prepare and file their financial statement. This is called tax return because it will show the income status of an individual, desired deduction, and to total the amount of taxes to be paid off.

The most popular and widely used by individual taxpayer is the Form 1040. There’s also a simplified version of Form 1040 and this is called Form 1040 EZ and can be used by single or joint filers. For tax-exempt organizations Form 990 is the main form used for filing their income tax returns. In one organization employment relationship is very important. Employers should prepare the W-2 Form of their employee to whom they pay salaries, wages and compensation. The employers are also responsible in the distribution of W-2 Form of their employees before January 31 for the previous year earnings.

In case the salary of an individual taxpayer is too low they are still required to file their returns but in the end they can wish for a refund. Employers can withhold taxes from the salary of their employees. An employee with too low salary income is not allowed to file their returns. An unclaimed or undeliverable refund is the money owed by government to the taxpayers plus it can also help them to face challenging economic crisis nowadays. There are new rules in filing your income tax returns and it can affect small businesses.

The IRS in the US is implementing the rules of not making the tax records publicly available except to those nonprofits organization that are required to create their own tax records that can open for public inspection. The IRS can also release data for research purposes only.