When you invest in anything, you will be required to pay taxes in one form or another. If you invest in real estate, then you pay property taxes. If you invest in stocks, then you will pay capital gains taxes. In the US, The Internal Revenue Service or the IRS collects taxes and enforces the internal revenue laws. It is an agency within the US Treasury Department and is responsible for interpretation and application of Federal tax law. If you fail to pay your taxes due, then the IRS will not hesitate to collect from you everything that you owe them as well as IRS tax penalties and interests. Most people want to pay the least amount of taxes possible which is why tax planning is so important. There are lots of free tax tips that will show you how to keep as much of your hard earned money in your pocket as possible.