Internal Revenue Code (IRC): Definition & Meaning
The Internal Revenue Code (IRC) is the body of law that contains the statutory rules governing the administration of internal revenue in the United States.
The IRC is generally divided into two main parts: the public sector and the private sector. The public sector consists of the Internal Revenue Service (IRS) and other government agencies that are responsible for the administration of taxes. The private sector consists of businesses and individuals that are subject to taxation.
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KEY TAKEAWAYS
- The domestic section of federal statutory tax legislation in the United States is known as the Internal Revenue Code (IRC).
- U.S. statutes (relating to tax law or other topics) were not codified before 1874.
- It is divided into sections and subtitles and arranged topically.
What Is the Internal Revenue Code (IRC)?
The Internal Revenue Code (IRC) refers to the U.S. Code Title 26. According to the United States Code website, it is the official “consolidation and codification of the general and permanent laws of the United States.”
The Internal Revenue Service (IRS) is responsible for implementing the laws of Title 26, sometimes known as the IRS code or IRS tax code (IRS). The IRC was originally compiled in 1939 and overhauled in 1954 and 1986. The code is the definitive source of all tax laws in the United States.
All applicable regulations relating to income, gift, estate, sales, payroll, and excise taxes are contained in Title 26.
Internal Revenue Code Subcategories
The following topics or subcategories comprise the Internal Revenue Code:
A. Income Taxes
B. Estate and Gift Taxes
C. Employment Taxes
D. Miscellaneous Excise Taxes
E. Alcohol, Tobacco, and Certain Other Excise Taxes
F. Procedure and Administration
G. The Joint Committee on Taxation
H. Financing of Presidential Election Campaigns
I. Trust Fund Code
J. Coal Industry Health Benefits
K. Group Health Plan Requirements
History of the Internal Revenue Code
A U.S. committee was formed in 1919. The initiative to update the U.S. Statutes was started by the House of Representatives. The United States Code was first published in 1926. . The Internal Revenue Code’s Title 26 was first drafted in 1939 and is a part of the U.S. Code.
Every year, Congress has the power to update the tax code and add new provisions. For instance, the Tax Cut and Jobs Act, passed by Congress in 2017, made significant changes to the tax system that affect both individuals and corporations.
The Title 26 laws are governed by the Internal Revenue Service (IRS), which was established in 1862. The IRS, which has its headquarters in Washington, D.C., is also in charge of tax collection. The Internal Revenue Service (IRS) has the authority to impose penalties and fines for Internal Revenue Code infractions.
Summary
The domestic section of federal statutory tax legislation in the United States is known as the Internal Revenue Code (IRC), officially referred to as the Internal Revenue Code of 1986.
It is arranged topically, with sections and subtitles that address administration and process as well as United States income tax, payroll taxes, estate, gift, and excise taxes.
The Internal Revenue Service is the federal agency in charge of implementation of the Code (IRS).
FAQS About Internal Revenue Code
The Internal Revenue Code is arranged thematically, and sections are typically identified by their numbers. Sections 1 through 9834 are included.
The IRC is administered and enforced by The Internal Revenue Service (IRS).
There are eleven subtitles in the IRC. Chapters, subchapters, parts, subparts, sections, subsections, paragraphs, subparagraphs, clauses, and subclauses are further divided into these.
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