Calculation and return of tax from an individual or a company is called as tax filing and it is governed by a body called Internal Revenue Service (IRS) or through any local tax agency. Tax returns can be made by filling a prescribed form provided by the respective authority. In United States, tax returns can be classified either as payment return or information return; the company or an individual also files information on the financial information from time to time and ask for the approval from authority. Then the tax obligations, deductions and exemptions are calculated and the final tax return is made by the tax payer. But people generally refer paying the taxes as the tax return which is not literally correct by the federal laws of America, it is may said as tax refund. Information returns are made through Form W-2 and Form 1099 and contains information regarding the income and further documentation required for tax processing of the employer, company, broker or any other person. After paying the tax, the tax payer has to file another document for proof. The resulting receipts of any kind are sent to the payer directly by the authority to ensure that the information provided by both parties is foolproof.