Internal Revenue Code
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The Internal Revenue Code (or IRC; more formally, the Internal Revenue Code of 1986, as amended) is the main body of domestic statutory tax law of the United States organized topically, including laws covering the income tax (see Income tax in the United States), payroll taxes, gift taxes, estate taxes and statutory excise taxes. The Internal Revenue Code is published as Title 26 of the United States Code (USC), and is also known as the internal revenue title.
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Genesis of tax codes in the United States
Prior to 1874, U.S. statutes were not codified. That is, they were not set forth in one comprehensive subject matter title, but were instead contained in the various acts passed by Congress. Codifications of statutes (including tax statutes) undertaken in 1873 resulted in the Revised Statutes of the United States, approved June 22, 1874, effective for the laws in force as of December 1, 1873 (title 35 of which was the internal revenue title). Another codification was undertaken in 1878.
In 1919, a committee of the U.S. House of Representatives began a project to recodify U.S. statutes which eventually resulted in a new code in 1926 (including tax statutes).
Internal Revenue Code of 1939
The tax statutes were re-codified by an Act of Congress on February 10, 1939 as the "Internal Revenue Code" (later known as the "Internal Revenue Code of 1939"). The 1939 Code was published as volume 53, Part I, of the United States Statutes at Large and as title 26 of the United States Code. Subsequent permanent tax laws enacted by the United States Congress updated and amended the 1939 Code.
Individual and corporate income tax
Section 1 of the Internal Revenue Code imposes the Federal income tax on the taxable income of U.S. citizens and residents, and of estates and trusts. The corporate income tax is imposed by Internal Revenue Code section 11.
Organization
Since the IRC is a part of the USC, the organization of the IRC is identical.
As an example, section 162(e)(2)(B)(ii) would be as follows:
Title 26: Internal Revenue Code
- Subtitle A: Income Taxes
- Chapter 1: Normal Taxes and Surtaxes
- Subchapter B: Computation of Taxable Income
- Part VI: Itemized Deductions for Individuals and Corporations
- Section 162: Trade or business expenses
- Subsection (e): Denial of deduction for certain lobbying and political expenditures
- Paragraph (2) Exception for local legislation
- Sub-paragraph (B)
- Clause (ii)
- Sub-paragraph (B)
- Paragraph (2) Exception for local legislation
- Subsection (e): Denial of deduction for certain lobbying and political expenditures
- Section 162: Trade or business expenses
- Part VI: Itemized Deductions for Individuals and Corporations
- Subchapter B: Computation of Taxable Income
- Chapter 1: Normal Taxes and Surtaxes
Subtitles
- A. Income Taxes (sections 1 through 1563)
As a further example, here are the chapters of this subtitle:
- Chapter 1—NORMAL TAXES AND SURTAXES (sections 1 through 1400L)[1]
- Chapter 2—TAX ON SELF-EMPLOYMENT INCOME (sections 1401 through 1403)[2]
- Chapter 3—WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN CORPORATIONS (sections 1441 through 1464)[3]
- Chapter 4—Repealed
- Chapter 5—Repealed
- Chapter 6—CONSOLIDATED RETURNS (sections 1501 through 1563)[4]
- B. Estate and Gift Taxes (sections 2001 through 2704)
- C. Employment Taxes (sections 3101 through 3510)
- D. Miscellaneous Excise Taxes (sections 4001 through 5000)
- E. Alcohol, Tobacco and Certain Other Excise Taxes (sections 5001 through 5891)
- F. Procedure and Administration (sections 6001 through 7874)
- G. The Joint Committee on Taxation (sections 8001 through 8023)
- H. Financing of Presidential Campaigns (sections 9001 through 9042)
- I. Trust Fund Code (sections 9500 through 9602)
- J. Coal Industry Health Benefits (sections 9701 through 9722)
- K. Group Health Plan Portability, Access, and Renewability Requirements (sections 9801 through 9833)
