S businesses pay to the Internal Revenue Service or I R s companies must file a return with the I.

R S.

Every fiscal year on their returns, companies declare revenue and capital gains and pay a certain tax rate based on those earnings tax taxes.

Tax is the money the government collects from people and businesses to finance the running of the country.

You have to pay your taxes every year, even if you disagree with how the government spends the money.

Corporate income tax, Corporate income tax companies pay corporate income tax as a percentage of their profits.

A good accountant can help reduce the amount of corporate income tax a company must pay.

Internal Revenue Service I.

R.

S the Internal Revenue Service or I.

R.

S is an agency of the U.

S.

Government that collects taxes and enforces tax laws.

We received a notice from the I.

R.

S saying that we're late in paying our taxes to file a return to file a return.

Tax returns are the official statements of income and taxes owed.

When we file a return, we submit these statements to the government for review.

In the United States, the deadline for individuals to file a tax return is April 15th fiscal year, fiscal year.

The fiscal year is the one year period ah company uses to calculate their annual financial statements and taxes.

Our company's fiscal year matches that of the U.

S.

Government, running from October 1st to September 30th to declare declare When a company files a tax return, it must declare or officially state what it has earned during the past year.

Most tax agencies require you to declare income you have earned on investments in other countries.

Capital gains capital gains.

Capital gains are the profits earned from selling an asset such as a building or an investment such as shares.

In most countries, companies and individuals are taxed on capital gains.

Our tax bill was very large last year because we had a lot of capital gains from the sale of property tax rate tax rate.

A tax rate is the percentage of tax that a company must pay to government.

The United States has a progressive tax rates system, which means rates are higher for companies with bigger profits.

The I.

R s charges a tax rate of 15% on corporations with income under $50,000.

Now it's your turn to practice some of the words we've looked at in this lesson.

In a moment you'll hear a series of sentences with the word replaced with a beep.

Repeat each sentence, including the missing word.

For example, if you here most tax agencies require you to, uh, income you have earned on investments in other countries.

You can say most tax agencies require you to declare income you have earned on investments in other countries.

We'll play the correct answer after each question ready.

Let's give it a go way had to pay tax on the capital we earned from selling our building.

Answer.

We had to pay tax on the capital gains we earned from selling our building.

Your company should file a tax even if it didn't make a profit answer.

Your company should file a tax return even if it didn't make a profit.

Our finance team is working hard to prepare statements for the end of our fiscal answer.

Our finance team is working hard to prepare statements for the end of our fiscal year.

That's all for this episode of video vocab.

Be sure to check out our website at www dot video vocab dot tv for more videos on business English vocabulary Thanks for watching and see you again soon.