Tax Law and Accounting In today's society, income taxes are something that almost everyone is familiar with. However, tax law and the general purpose of income taxes is something that society at large pays little attention to. Furthermore, few tax preparers are aware that there are differences between generally accepted accounting principles (GAAP) and tax accounting, let alone the implications of avoiding or evading correctly completing income tax reporting. This article will discuss the objectives of modern tax law, the differences between generally accepted accounting principles (GAAP) and tax accounting, as well as the differences between tax evasion and tax avoidance. Goals of Modern Tax Law William Perez explains that income taxes are paid because the United States must pay for such expenses as “schools, roads, hospitals, armed forces, public employees, national parks, and so on” (2007, ¶ 2) and the The process by which the United States pays for these expenses occurs through income taxes. The United States requires that people and businesses with earned income pay the government a portion of their earned income. This portion of your earned income paid to the government helps pay for the many expenses our society needs. The process by which income taxes are paid is simple. Tax laws are written by the President and Congress of the United States. Enforcing laws written by the President and Congress is the responsibility of the Internal Revenue Service (Perez, 2007), an organization that was once called the Bureau of Internal Revenue but was changed to the Internal Revenue Service (IRS) in the 1950s. (IRS, A Brief History of the IRS, n.d., ¶4). The IRS is responsible for collecting taxes, issuing refunds…half of paper…fighting abusive tax avoidance. Retrieved June 3, 2007, from http://taxes.about.com/gi/dynamic/offsite.htm?zi=1/XJ&sdn=taxes&cdn=money&tm=10& gps=122_87_1006_544&f=00&su=p649.0.147.ip_&tt=2&bt= 1&bts=1&zu=http%3A//www.irs.gov/Jacobs, V. (2004). Offshore tax evasion. Retrieved June 3, 2007, from http://www.offshorepress.com/vkjcpa/tax-evasion.htm Perez, W. (2007). Tax 101: Five key ideas. Retrieved June 3, 2007, from http://taxes.about.com/od/taxplanning/a/taxbasics.htmPlesko, G. (2002, Spring). Company book reconciliation and tax net income, tax years 1996-1998 - Statistics included. Retrieved June 3, 2007, from http://findarticles.com/p/articles/mi_m2893/is_4_21/ai_90116649/pg_4Pope, T.R., Anderson, K.E., Kramer, J.L., (2007). Prentice Hall Federal Taxation – Individual. 2007 edition. Pearson Prentice Hall, Upper Saddle River, NJ