INTERNAL REVENUE CODE
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 provi-
sions relating to employment taxes and other
sections dealing with federal insurance contri-
butions, 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, PEN-
SION 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 con-
tains 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 techni-
cal language, has required law and accounting
firms to develop specialists in the various areas
of taxation.
CROSS-REFERENCES
