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Internal Revenue Service: Difference between revisions
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{{Short description|Revenue service of the US federal government}} | {{Short description|Revenue service of the US federal government}} | ||
{{Use mdy dates|date=April 2016}} | {{Use mdy dates|date=April 2016}} | ||
{{Infobox government agency | {{Infobox government agency | ||
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The '''Internal Revenue Service''' ('''IRS''') is the [[revenue service]] for the [[Federal government of the United States|United States federal government]], which is responsible for collecting [[Taxation in the United States|U.S. federal taxes]] and administering the [[Internal Revenue Code]], the main body of the federal statutory tax law. It is an agency of the [[United States Department of the Treasury|Department of the Treasury]] and led by the [[Commissioner of Internal Revenue]], who is appointed to a five-year term by the President of the United States. The duties of the IRS include providing tax assistance to taxpayers; pursuing and resolving instances of erroneous or fraudulent tax filings; and overseeing various benefits programs, including the [[Affordable Care Act]].<ref>{{cite web|url=https://www.irs.gov/Affordable-Care-Act/Affordable-Care-Act-Tax-Provisions|title=Affordable Care Act Tax Provisions |website=Internal Revenue Service}}</ref> | The '''Internal Revenue Service''' ('''IRS''') is the [[revenue service]] for the [[Federal government of the United States|United States federal government]], which is responsible for collecting [[Taxation in the United States|U.S. federal taxes]] and administering the [[Internal Revenue Code]], the main body of the federal statutory tax law. It is an agency of the [[United States Department of the Treasury|Department of the Treasury]] and led by the [[Commissioner of Internal Revenue]], who is appointed to a five-year term by the President of the United States. The duties of the IRS include providing tax assistance to taxpayers; pursuing and resolving instances of erroneous or fraudulent tax filings; and overseeing various benefits programs, including the [[Affordable Care Act]].<ref>{{cite web|url=https://www.irs.gov/Affordable-Care-Act/Affordable-Care-Act-Tax-Provisions|title=Affordable Care Act Tax Provisions |website=Internal Revenue Service}}</ref> | ||
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==History== | ==History== | ||
===American Civil War (1861–1865)=== | ===American Civil War (1861–1865)=== | ||
In July 1862, during the [[American Civil War]], [[President of the United States|President]] [[Abraham Lincoln]] and [[United States Congress|Congress]] passed the [[Revenue Act of 1862]], creating the office of Commissioner of Internal Revenue and enacting a temporary [[income tax]] to pay war expenses. | In July 1862, during the [[American Civil War]], [[President of the United States|President]] [[Abraham Lincoln]] and [[United States Congress|Congress]] passed the [[Revenue Act of 1862]], creating the office of Commissioner of Internal Revenue and enacting a temporary [[income tax]] to pay war expenses. | ||
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===Post 16th Amendment (1913–present)=== | ===Post 16th Amendment (1913–present)=== | ||
Though the constitutional amendment to allow the federal government to collect income taxes was proposed by [[William Howard Taft|President Taft]] in 1909, the [[Sixteenth Amendment to the United States Constitution|16th Amendment]] was not ratified until 1913, just before the start of the [[World War I|First World War]]. That same year, the first edition of the 1040 form was introduced. A copy of the 1913 form can be viewed online<ref>{{cite web|url=https://www.irs.gov/pub/irs-utl/1913.pdf |title=The first 1040 with instructions |access-date=November 8, 2011|archive-url=https://web.archive.org/web/20230523143545/https://www.irs.gov/pub/irs-utl/1913.pdf | archive-date=May 23, 2023}}</ref><ref>{{cite web |title=A scanned copy of the first 1040 form, from the US Library of Congress Blogs |url=https://blogs.loc.gov/law/files/2017/04/Historic-Form-1040-pg1-2.jpg |url-status=live |archive-url=https://web.archive.org/web/20230518090918/https://blogs.loc.gov/law/2017/04/the-first-form-1040/ |archive-date=May 18, 2023 |website=Library Of Congress}}</ref> and shows that only those with annual incomes of at least $3,000 | Though the constitutional amendment to allow the federal government to collect income taxes was proposed by [[William Howard Taft|President Taft]] in 1909, the [[Sixteenth Amendment to the United States Constitution|16th Amendment]] was not ratified until 1913, just before the start of the [[World War I|First World War]]. That same year, the first edition of the 1040 form was introduced. A copy of the 1913 form can be viewed online<ref>{{cite web|url=https://www.irs.gov/pub/irs-utl/1913.pdf |title=The first 1040 with instructions |access-date=November 8, 2011|archive-url=https://web.archive.org/web/20230523143545/https://www.irs.gov/pub/irs-utl/1913.pdf | archive-date=May 23, 2023}}</ref><ref>{{cite web |title=A scanned copy of the first 1040 form, from the US Library of Congress Blogs |url=https://blogs.loc.gov/law/files/2017/04/Historic-Form-1040-pg1-2.jpg |url-status=live |archive-url=https://web.archive.org/web/20230518090918/https://blogs.loc.gov/law/2017/04/the-first-form-1040/ |archive-date=May 18, 2023 |website=Library Of Congress}}</ref> and shows that only those with annual incomes of at least $3,000 were instructed to file an income tax return. | ||
In the first year after the ratification of the 16th Amendment, no taxes were collected. Instead, taxpayers simply completed the form and the IRS checked the form for accuracy. The IRS's workload jumped by ten-fold, triggering a massive restructuring. Professional tax collectors began to replace a system of "patronage" appointments. The IRS doubled its staff but was still processing 1917 returns in 1919.<ref>{{cite web |url=http://www.tax.org/Museum/1901-1932.htm |title=1901–1932: The Income Tax Arrives |publisher=Tax.org |date=April 14, 1906 |access-date=August 9, 2010 |archive-url=https://web.archive.org/web/20100814150842/http://www.tax.org/museum/1901-1932.htm |archive-date=August 14, 2010 }}</ref> | In the first year after the ratification of the 16th Amendment, no taxes were collected. Instead, taxpayers simply completed the form and the IRS checked the form for accuracy. The IRS's workload jumped by ten-fold, triggering a massive restructuring. Professional tax collectors began to replace a system of "patronage" appointments. The IRS doubled its staff but was still processing 1917 returns in 1919.<ref>{{cite web |url=http://www.tax.org/Museum/1901-1932.htm |title=1901–1932: The Income Tax Arrives |publisher=Tax.org |date=April 14, 1906 |access-date=August 9, 2010 |archive-url=https://web.archive.org/web/20100814150842/http://www.tax.org/museum/1901-1932.htm |archive-date=August 14, 2010 }}</ref> | ||
Income tax raised much of the money required to finance the war effort; in 1918 a new Revenue Act established a top tax rate of 77%. | Income tax raised much of the money required to finance the war effort; in 1918 a new Revenue Act established a top tax rate of 77%. | ||
In 1919 the IRS was tasked with enforcement of laws relating to [[Prohibition in the United States|prohibition of alcohol sales and manufacture]]; this was transferred to the jurisdiction of the Department of Justice in 1930. After repeal in 1933, the IRS resumed collection of taxes on beverage alcohol.<ref name=IRSHL>{{cite web|url=https://www.irs.gov/newsroom/historical-highlights-of-the-irs |title=Historical highlights of the IRS|access-date=October 6, 2017}}</ref> The alcohol, tobacco and firearms activities of the bureau were segregated into the [[Bureau of Alcohol, Tobacco, Firearms and Explosives]] in 1972. | In 1919 the IRS was tasked with enforcement of laws relating to [[Prohibition in the United States|prohibition of alcohol sales and manufacture]]; this was transferred to the jurisdiction of the Department of Justice in 1930. After repeal in 1933, the IRS resumed collection of taxes on beverage alcohol.<ref name=IRSHL>{{cite web|url=https://www.irs.gov/newsroom/historical-highlights-of-the-irs |title=Historical highlights of the IRS|access-date=October 6, 2017}}</ref> The alcohol, tobacco and firearms activities of the bureau were segregated into the [[Bureau of Alcohol, Tobacco, Firearms and Explosives]] in 1972. | ||