Tax Law

Tax law is the codified system of laws that describes government levies on economic transactions, commonly called taxes.

Income Tax

In 1913, the Sixteenth Amendment to the U.S. Constitution was ratified. It empowered Congress to tax "incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration." The Internal Revenue Code is today embodied as Title 26 of the United States Code (26 U.S.C.) and is a lineal descendant of the income tax act passed in 1913, following ratification of the Sixteenth Amendment. While some states do not have an income tax (Nevada), all residents and all citizens of the United States are subject to the federal income tax. Not everyone, however, must file a return. The requirements for filing are found in 26 U.S.C. § 6011. As the largest contributor, its purpose is to generate revenue for the federal budget.

Estate Tax

One of the oldest and most common forms of taxation is the taxation of property held by an individual at the time of their death. Such a tax can take the form, among others, of estate tax (a tax levied on the estate before any transfers). An estate tax is a charge upon the decedent's entire estate, regardless of how it is disbursed. An alternative form of death tax is an inheritance tax (a tax levied on individuals receiving property from the estate). Taxes imposed upon death provide incentive to transfer assets before death.

Gift Tax

Gift tax laws are generally designed to prevent complete tax avoidance by this route. The Federal Estate Tax is integrated with the Federal Gift tax so that large estates cannot be shielded from taxation by lifetime giving. Many states also impose an estate tax.

Property Tax

Taxes are sometimes classified as either specific or ad valorem. Specific taxes are of a fixed amount based on a number, or standard of weight or measurement. Ad valorem taxes are based on a fixed proportion of the value of the property with respect to which the tax is assessed. They require an appraisal of the taxable subject matter's worth. General property taxes are almost invariably of this second type -- ad valorem. Ad valorem property taxes are based on ownership of the property, and are payable regardless of whether the property is used or not and whether it generates income for the owner (although these factors may affect the assessed value).

Tax Law Issues

Advance Notice for Tax Professionals	IRS sometimes releases Revenue Rulings, Revenue Procedures and other technical items in advance of publishing them in the Internal Revenue Bulletin. The full text of these advance notices is available for download.
Applicable Federal Rates	These revenue rulings provide various prescribed rates for federal income tax purposes for the current and recent-past months. Click here to go to the Applicable Federal Rates
BLS Department Store Inventory Price Indexes	This page provides directions and links to the Department Store Inventory Price Indexes published each month by the Bureau of Labor Statistics (BLS) on the BLS website. These BLS indexes may be used by department stores using the retail and last in, first out, (LIFO) inventory methods, in valuing inventories.
Calendar(s)	This probably won't help you organize your birthday card list, but our Tax Calendar will help you find important individual, business, and excise tax dates. We also have an Online Tax Calendar which replaces the 12-month Tax Tips newsletter subscription.
Collection Financial Standards	Collection Financial Standards are used to help determine a taxpayer's ability to pay a delinquent tax liability. Allowances for food, clothing and other items, known as the National Standards.
Coordinated Issue Papers	Certain issues seem to crop up frequently during examination of returns. These Coordinated Issue Papers are the Service's current thinking on a wide range of industries and issues.
Earned Income Tax Credit (EITC)	Important information on EITC and Advance EITC , and EITC materials for your business needs.
Exempt Organizations	Learn about the "exemption" process and search through a list of qualified charitable organizations. Download an Exempt Organization Tax Kit and much more. A comprehensive source of information about Exempt Organizations.
Extensions of Time to File	Quick links to downloadextension forms for individual and corporation income tax returns.
Help During Disasters	If your client has sustained damage or lost property in a location declared by the President as a major disaster area, you should know about IRS Help During Disasters .
Independent Contractor or Employee	Publication 1976 - Independent Contractor or Employee. Section 530 provides businesses with relief from federal employment tax obligations if certain requirements are met. For additional information see Training Materials for IRS Examiners on Worker Classification
Internal Revenue Bulletins	The Internal Revenue Bulletin (IRB) is the authoritative instrument of the IRS for announcing all substantive ruling necessary to promote a uniform application of tax law.
Market Segment Understandings	The MSU Program , first introduced in 1993, is a means of enhancing tax compliance while reducing taxpayer burden. This Program envisions that the IRS and taxpayers in particular market segments, work together to improve tax compliance in those areas through educational efforts and other collaborative approaches rather than through traditional audit techniques.
MSSP Audit Technique Guides	The Market Segment Specialization Program focuses on developing highly trained examiners for a particular market segment. These Audit Technique Guides contain examination techniques, common and unique industry issues, business practices, industry terminology and other information to assist examiners in performing examinations.
New Law & Changes	Highlights of changes in the tax laws and links to other government sites with information on tax legislation.
Other Hot Tax Professional Questions	Need information on the Taxpayer Relief Act of 1997, or the Technical Corrections Bill, or any other bills? Here is a quick link to Tax Law Legislation .
Statistics of Income	There's a wealth of information about the financial composition of individuals, business taxpayers, tax exempt organizations and more. Statistics of Income data has been sampled from all kinds of returns and sorted in lots of interesting ways.
Tax Statute References	Links to researchable versions of the Code of Federal Regulations (CFR), Internal Revenue code (IRC) and many other useful reference databases are now available from our Tax Regs In English page.
Tax Tables & Schedules	Interactive Tax Tables and Tax Rate Schedules.

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