The Internal Revenue Code (or IRC) (more formally, the Internal Revenue Code of 1986, as amended) is the main body of domestic tax law of the United States organized topically, including laws covering the income tax (see Income tax in the United States), payroll taxes, and 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.

Perhaps the most widely known function of the IRC is that it is the law which requires all Americans to pay a Federal income tax. Indeed, the first operative words of the document are the title to § 1, "Tax imposed", and the first section describes the exact dollar amounts and percentages of income that the law requires must be paid as income tax.

History

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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).

In 1939 the tax law was separately codified; subsequent permanent tax laws updated and amended the Code. In 1954, in connection with a general overhaul of the Internal Revenue Service, the IRC was greatly reorganized and expanded; to prevent confusion with the older law, the new version was thereafter referred to as the Internal Revenue Code of 1954 (see Internal Revenue Code of 1954) and the prior version as the Internal Revenue Code of 1939.

In 1986, the '54 Code was renamed the Internal Revenue Code of 1986 by the Tax Reform Act of 1986. The 1986 Act contained substantial amendments, but no formal re-codification. Thus, the 1986 Code, as amended from time to time, retains the basic structure of the 1954 Code.

The Internal Revenue Code includes most but not all Federal tax statutes. Some tax statutes are found in other provisions of the United States Code including title 11 (related to bankruptcy) and title 28 (related to the judiciary). Further, some tax statutes are not codified at all (for example, the provisions of tax statutes that list the effective dates of Internal Revenue Code amendments).

Organization

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Since the IRC is a part of the USC, the organization of the IRC is identical. See United States Code#Organization.

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)

Subtitles

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• 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)
  • CHAPTER 2—TAX ON SELF-EMPLOYMENT INCOME (sections 1401 through 1403)
  • CHAPTER 3—WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN CORPORATIONS (sections 1441 through 1464)
  • CHAPTER 4—Repealed
  • CHAPTER 5—Repealed
  • CHAPTER 6—CONSOLIDATED RETURNS (sections 1501 through 1563)
• 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)

List of commonly-referenced sections

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All of these examples are from Chapter 1 (Normal Taxes and Surtaxes) of Subtitle A (Income Taxes)

(key: §="section", §§="sections")

Title 26 - Internal Revenue Code

• Subtitle A - Income Taxes (§§ 1-1563)
  • Chapter 1 - Normal Taxes and Surtaxes (§§ 1-1400L)
    • Subchapter A - Determination of Tax Liability (§§ 1-59)
      • Part I - Tax on Individuals (§§ 1-59)
        • Section 1 - Tax imposed
    • Subchapter B - Computation of Taxable Income (§§ 61-291)
      • Part VI - Itemized Deductions for Individuals and Corporations (§§ 161-198)
        • Section 179 - Election to expense certain depreciable business assets ()
    • Subchapter C - Corporate Distributions and Adjustments (§§ 301-385)
      • Part III - Corporate Organizations and Reorganizations (§§ 351-368)
        • Subpart B - Effects on Shareholders and Security Holders (§§ 354-358)
          • Section 355 - Corporate divisions ()
    • Subchapter D - Deferred Compensation, Etc. (§§ 401-425)
      • Part I - Pension, Profit-sharing, Stock Bonus Plas, etc. (§§ 401-420)
        • Subpart A - General Rule (§§ 401-409)
          • Section 401 - Qualified pension, profit-sharing, and stock bonus plans
            • paragraph (a) ("401(a)") - employer-sponsored retirement plan for employees of state and local governments and certain tax-exempt entities ()
            • paragraph (k) ("401(k)")- employer-sponsored retirement plan ()
          • Section 403 - Taxation of employee annuities
            • paragraph (b) ("403(b)") - employer-sponsored retirement plan at non-profit organizations ()
          • Section 408 - Individual Retirement Accounts ()
          • Section 408A - Roth IRAs ()
    • Subchapter E - Accounting Periods and Methods of Accounting (§§ 441-483)
      • Part II - Methods of Accounting (§§ 446-475)
        • Subpart A - Methods of Accounting in General (§§ 446-448)
        • Subpart B - Taxable Year for Which Items of Gross Income Included (§§ 451-460)
          • Section 457 - retirement plan for governmental and certain non governmental employers ()
    • Subchapter F - Exempt Organizations (§§ 501-530)
      • Part I - General Rule (§§ 501-505)
        • Section 501 - Exemption from tax on corporations, certain trusts, etc. ()
          • paragraph (c) ("501(c)") - List of exempt organizations ()
            • subparagraph (1) ("501(c)(1)") - corporations organized under Acts of Congress such as Federal Credit Unions ()
            • subparagraph (2) ("501(c)(2)") - title-holding corporations for exempt organizations ()
            • subparagraph (3) ("501(c)(3)") - charitable, non-profit, religious, and educational organizations ()
            • subparagraph (4) ("501(c)(4)") - political education organizations ()
            • subparagraph (6) ("501(c)(6)") - business leagues and chambers of commerce ()
            • subparagraph (7) ("501(c)(7)") - recreational clubs ()
      • Part VI - Political Organizations (§ 527)
        • Section 527 - political advocacy groups ()
      • Part VIII - Higher Education Savings Entities (§§ 529-530)
        • Section 529 - Qualified tuition programs ()
        • Section 530 - Coverdell education savings accounts ()
    • Subchapter O - Gain or Loss on Disposition of Property
      • Part III - Common Nontaxable Exchanges
        • Section 1031 - Exchange of property held for productive use or investment ()

External links

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• Database containing the text of Title 26

Taxation in the United States | Tax Acts of the United States