Tazorac is a retinoid gel that is used to treat wrinkles, acne and psoriasis. Retinoic acid is a derivative of Vitamin A and causes the top layer of the skin to naturally exfoliate and expose fresh skin below. It also prevents the breakdown of collagen which is a protein that gives the skin an elastic and youthful appearance. Tazorac gel should be applied only to the affected areas as healthy skin will experience side effects such as itching or burning.