The Internal Revenue Code (IRC) is Title 26 of the U.S. Code, which is the official collection of the permanent laws of the United States, as stated in its introduction. Often called the IRS code or IRS tax code, the laws in Title 26 are managed by the Internal Revenue Service (IRS). The U.S. Code was first released in 1925 by the House of Representatives. Title 26 includes all the important rules about income, gift, estate, sales, payroll, and excise taxes.
History of IRC
In 1919, a group from the U.S. House of Representatives started a project to update the U.S. Statutes. The final version came out in 1925. Title 26, known as the Internal Revenue Code, was first put together in 1939. Each year, Congress can change the tax code and include new items. For instance, in 2017, Congress approved the Tax Cut and Jobs Act, which made significant changes to the tax code for individuals and businesses.
The Internal Revenue Service (IRS) was established in 1862 and oversees the laws in Title 26. Located in Washington, D.C., the IRS collects taxes and has the authority to impose fines and penalties for breaking the Internal Revenue Code.
Conclusion
The IRC plays an important role in the U.S. tax system, but it also brings major challenges and chances for improvement. As the economy and society change, the IRC will probably need to adjust to meet new issues and keep the revenue system fair and effective.