Question

A group of employees, who read on a website that income tax collection is illegal, approach Hawa Furst, the controller for a large company. They request that he stop withholding income taxes from their pay unless he can explain what laws govern income tax collection. What should Hawa tell them?

• The 16th Amendment to the U.S. Constitution created the legislation to support the collection of taxes from the employees.

• The Federal Income Contributions Act mandated tiered tax system.

• The Current Tax Payment Act mandated employee income taxes.

Answer 1

The 16th Amendment to the U.S. Constitution created the legislation to support the collection of taxes from the employees.

Option 1 is correct