Federal tax law begins (and ends!) with the Internal Revenue Code (IRC or “Tax Code”), which was enacted by Congress in Title 26 of the United States Code (26 U.S.C. et seq). The Tax Code, formally known as the Internal Revenue Code of 1986, contains the federal domestic statutory tax law of the United States.
The Internal Revenue Code is organized by such topics as income tax, payroll tax, estate tax, gift tax, and excise tax. The Tax Code also contains rules for procedure and administration. As everyone soon finds out after earning their first paycheck, if not sooner, the agency responsible for administering its rules and associated regulations is the Internal Revenue Service, aka IRS.
The following is perhaps the greatest understatement known by a tax professional: The Tax Code is complicated. As TV attorney Jackie Childs would say “it’s complicated, convoluted, complex!” A tax professional may help simplify such complexity and ensure that all requirements of the Tax Code are met in a particular matter.
To increase this complexity, the sections of the Tax Code must be read in the context of the entire Tax Code and the court decisions that interpret it. It is interesting that the IRS warns “please do not be misled by the false interpretations of the IRC promoted by the purveyors of anti-tax law evasion schemes.
Treasury regulations (26 C.F.R. et seq) comprise the “federal tax regulations.” These “regs” as they are often known, provide the official interpretation of the IRC by the U.S. Department of the Treasury. The IRS also publishes a regular series of other forms of official tax guidance, including revenue rulings, revenue procedures, notices, and announcements.
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. Also, some tax statutes such as the provisions of tax statutes that list the effective dates of Internal Revenue Code amendments are not codified at all.
To resolve tax-related issues, it is often necessary to review and interpret the complicated body of federal tax law. At this time, it is important for any taxpayer, whether an individual or business, to engage the advice of an experienced and knowledgeable tax professional. If you have any question about taxes, please call THE TAX EXPERTS at the Thorgood Law Firm at 212-490-0704 for assistance or learn more online at www.thorgoodlaw.com. The consultation is FREE!
