The Internal Revenue Code is the body of law that codifies all
federal tax laws, including income, estate, gift, excise, alcohol,
tobacco, and employment taxes. These laws constitute title 26 of the
U.S. Code (26 U.S.C.A. § 1 et seq. [1986]) and are implemented by the Internal Revenue Service through its Treasury Regulations and Revenue Rulings.
Congress made major statutory changes to title 26 in 1939, 1954, and 1986. Because of the extensive revisions made in the tax reform act of 1986, title 26 is now known as the Internal Revenue Code of 1986 (Pub. L. No. 99-514, § 2, 100 Stat. 2095 [Oct. 22, 1986]).
Subtitle
A of the Code contains five chapters on income taxes. The chapters
cover normal income taxes and surtaxes, taxes on self-employment income,
withholding of taxes on nonresident Aliens and foreign corporations, taxes on transfers to avoid Income Tax, and consolidated returns.
Subtitle B deals with Estate and Gift Taxes.
The rules and regulations concerning the taxation of probate estates
and gifts are very complicated. This subtitle contains chapters on
taxing generation-skipping transfers and rules on special valuation of
property.
Subtitle C contains the law of employment taxes. It
consists of chapters on general provisions relating to employment taxes
and other sections dealing with federal insurance contributions,
railroad retirement taxes, and federal unemployment taxes.
Subtitle
D covers miscellaneous excise taxes. Its fifteen chapters cover a
variety of issues, including retail excise taxes, manufacturers' excise
taxes, taxes on wagering, environmental taxes, public charities, private
foundations, Pension plans, and certain group health plans.
Subtitle
E covers alcohol, tobacco, and other excise taxes. Chapter 53 deals
with machine guns, destructive devices, and certain other firearms.
Subtitle
F contains provisions on procedure and administration. Under this
subtitle are twenty chapters that deal with every step of the taxation
process, from the setting of filing dates and the collection of
penalties for late filing, to criminal offenses and judicial
proceedings. The rules for administrative proceedings under the Code are
addressed in the appendix to title 26.
Subtitle G addresses the
organization of the Congressional Joint Committee on Taxation. Subtitle H
contains the rules for the financing of presidential election
campaigns. Subtitle I contains the Trust Fund Code.
The Internal
Revenue Code has grown steadily since the 1930s. The complexity of its
provisions, most of which are written in technical language, has
required law and accounting firms to develop specialists in the various
areas of taxation.
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