Internal Revenue Code
Encyclopedia
The Internal Revenue Code (or IRC; more formally, the Internal Revenue Code of 1986) is the domestic portion of Federal statutory tax law in the United States, published in various volumes of the United States Statutes at Large, and separately as Title 26 of the United States Code
(USC). It is organized topically, into subtitles and sections, covering income tax
(see Income tax in the United States
), payroll tax
es, estate taxes
, gift taxes
and excise taxes; as well as procedure and administration. Its implementing agency is the Internal Revenue Service
.
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 United States Code in 1926 (including tax statutes).
and as title 26 of the United States Code. Subsequent permanent tax laws enacted by the United States Congress
updated and amended the 1939 Code.
, the IRC was greatly reorganized by the 83rd United States Congress
and expanded (by Chapter 736). Ward M. Hussey
was the principal drafter of the Internal Revenue Code of 1954. The code was published in volume 68A of the United States Statutes at Large
. To prevent confusion with the 1939 Code, the new version was thereafter referred to as the "Internal Revenue Code of 1954" and the prior version as the "Internal Revenue Code of 1939". The lettering and numbering of subtitles, sections, etc., was completely changed. For example, section 22 of the 1939 Code (defining gross income) was roughly analogous to section 61 of the 1954 Code. The 1954 Code replaced the 1939 Code as title 26 of the United States Code
.
The 1954 Code temporarily extended the Revenue Act of 1951
's 5 percentage point increase in corporate tax rates through March 31, 1955, increased depreciation
deductions by providing additional depreciation schedules, and created a 4 percent dividend tax credit for individuals.
changed the name of the 1954 Code to the “Internal Revenue Code of 1986”. The Internal Revenue Code is separately published as Title 26 of the United States Code. The text of the Internal Revenue Code as published in title 26 of the U.S. Code is identical to the Internal Revenue Code as published in the various volumes of the United States Statutes at Large
. Of the 50 enacted titles, the Internal Revenue Code is the only volume that has been published in the form of a separate code.
on individuals, the 1954 Code imposed a progressive tax
with 24 income brackets applying to tax rates ranging from 20% to 91%. For example, the following is a schedule showing the Federal marginal income tax rate
imposed on each level of taxable income
of a single (unmarried) individual under the 1954 Code:
and other statutes of Congress subsequent to 1954 generally mean Title 26 of the Code as amended. The basic structure of the Title 26 remained the same until the enactment of the comprehensive revision contained in Tax Reform Act of 1986
, although of course individual provisions of the law were changed on a regular basis.
Section 2 of the Tax Reform Act of 1986
provides (in part): Redesignation of 1954 Code. - The Internal Revenue Title enacted August 16, 1954, as heretofore, hereby, or hereafter amended, may be cited as the "Internal Revenue Code of 1986". References in Laws, Etc. - Except when inappropriate, any reference in any law, Executive order, or other document -
Thus, the 1954 Code was renamed the Internal Revenue Code of 1986 by section 2 of the Tax Reform Act of 1986
. The 1986 Act contained substantial amendments, but no formal re-codification. That is, the 1986 Code retained most of the same lettering and numbering of subtitles, chapters, subchapters, parts, subparts, sections, etc. The 1986 Code, as amended from time to time (and still published as title 26 of the United States Code), retains the basic structure of the 1954 Code.
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).
imposes the Federal income tax on the taxable income of U.S. citizens and residents, and of estates and trusts. The corporate income tax is imposed by Internal Revenue Code section 11.
As an example, section 162(e)(2)(B)(ii) would be as follows:
Title 26: Internal Revenue Code
The Internal Revenue Code is topically organized and generally referred to by section number (sections 1 through 9834). Some topics are short (e.g., tax rates) and some quite long (e.g., pension & benefit plans). The following describes the key topics, by section number:
United States Code
The Code of Laws of the United States of America is a compilation and codification of the general and permanent federal laws of the United States...
(USC). It is organized topically, into subtitles and sections, covering income tax
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
(see Income tax in the United States
Income tax in the United States
In the United States, a tax is imposed on income by the Federal, most states, and many local governments. The income tax is determined by applying a tax rate, which may increase as income increases, to taxable income as defined. Individuals and corporations are directly taxable, and estates and...
), payroll tax
Payroll tax
Payroll tax generally refers to two different kinds of similar taxes. The first kind is a tax that employers are required to withhold from employees' wages, also known as withholding tax, pay-as-you-earn tax , or pay-as-you-go tax...
es, estate taxes
Inheritance tax
An inheritance tax or estate tax is a levy paid by a person who inherits money or property or a tax on the estate of a person who has died...
, gift taxes
Gift tax
A gift tax is a tax imposed on the gratuitous transfer of ownership of property. The United States Internal Revenue Service says a gift is "Any transfer to an individual, either directly or indirectly, where full consideration is not received in return."When a taxable gift in the form of cash,...
and excise taxes; as well as procedure and administration. Its implementing agency is the Internal Revenue Service
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
.
Genesis of tax codes in the United States
Prior to 1874, U.S. statutes (whether in tax law or other subjects) 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 the Revised Statutes 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 United States Code in 1926 (including tax statutes).
Internal Revenue Code of 1939
The tax statutes were re-codified by an Act of Congress on February 10, 1939 as the "Internal Revenue Code" (later known as the "Internal Revenue Code of 1939"). The 1939 Code was published as volume 53, Part I, of the United States Statutes at LargeUnited States Statutes at Large
The United States Statutes at Large, commonly referred to as the Statutes at Large and abbreviated Stat., are the official source for the laws and concurrent resolutions passed by the United States Congress...
and as title 26 of the United States Code. Subsequent permanent tax laws enacted by the United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
updated and amended the 1939 Code.
Internal Revenue Code of 1954
On August 16, 1954, in connection with a general overhaul of the Internal Revenue ServiceInternal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
, the IRC was greatly reorganized by the 83rd United States Congress
83rd United States Congress
The Eighty-third United States Congress was a meeting of the legislative branch of the United States federal government, composed of the United States Senate and the United States House of Representatives. It met in Washington, DC from January 3, 1953 to January 3, 1955, during the first two years...
and expanded (by Chapter 736). Ward M. Hussey
Ward M. Hussey
Ward MacLean Hussey drafted the principal part of the United States federal income tax laws, beginning before the enactment of the Internal Revenue Code of 1954....
was the principal drafter of the Internal Revenue Code of 1954. The code was published in volume 68A of the United States Statutes at Large
United States Statutes at Large
The United States Statutes at Large, commonly referred to as the Statutes at Large and abbreviated Stat., are the official source for the laws and concurrent resolutions passed by the United States Congress...
. To prevent confusion with the 1939 Code, the new version was thereafter referred to as the "Internal Revenue Code of 1954" and the prior version as the "Internal Revenue Code of 1939". The lettering and numbering of subtitles, sections, etc., was completely changed. For example, section 22 of the 1939 Code (defining gross income) was roughly analogous to section 61 of the 1954 Code. The 1954 Code replaced the 1939 Code as title 26 of the United States Code
United States Code
The Code of Laws of the United States of America is a compilation and codification of the general and permanent federal laws of the United States...
.
The 1954 Code temporarily extended the Revenue Act of 1951
Revenue Act of 1951
The United States Revenue Act of 1951 temporarily increased individual income tax rates through 1953, and temporarily raised corporate tax rates 5 percentage points through March 31, 1954....
's 5 percentage point increase in corporate tax rates through March 31, 1955, increased depreciation
Depreciation
Depreciation refers to two very different but related concepts:# the decrease in value of assets , and# the allocation of the cost of assets to periods in which the assets are used ....
deductions by providing additional depreciation schedules, and created a 4 percent dividend tax credit for individuals.
Relationship to Title 26 of the United States Code
The Internal Revenue Code of 1954 was enacted in the form of a separate code by act of August 16, 1954, ch. 736, . The Tax Reform Act of 1986Tax Reform Act of 1986
The U.S. Congress passed the Tax Reform Act of 1986 to simplify the income tax code, broaden the tax base and eliminate many tax shelters and other preferences...
changed the name of the 1954 Code to the “Internal Revenue Code of 1986”. The Internal Revenue Code is separately published as Title 26 of the United States Code. The text of the Internal Revenue Code as published in title 26 of the U.S. Code is identical to the Internal Revenue Code as published in the various volumes of the United States Statutes at Large
United States Statutes at Large
The United States Statutes at Large, commonly referred to as the Statutes at Large and abbreviated Stat., are the official source for the laws and concurrent resolutions passed by the United States Congress...
. Of the 50 enacted titles, the Internal Revenue Code is the only volume that has been published in the form of a separate code.
Progressivity of the 1954 Code
With respect to the Federal income taxIncome tax in the United States
In the United States, a tax is imposed on income by the Federal, most states, and many local governments. The income tax is determined by applying a tax rate, which may increase as income increases, to taxable income as defined. Individuals and corporations are directly taxable, and estates and...
on individuals, the 1954 Code imposed a progressive tax
Progressive tax
A progressive tax is a tax by which the tax rate increases as the taxable base amount increases. "Progressive" describes a distribution effect on income or expenditure, referring to the way the rate progresses from low to high, where the average tax rate is less than the marginal tax rate...
with 24 income brackets applying to tax rates ranging from 20% to 91%. For example, the following is a schedule showing the Federal marginal income tax rate
Marginal tax rate
In a tax system and in economics, the tax rate describes the burden ratio at which a business or person is taxed. There are several methods used to present a tax rate: statutory, average, marginal, effective, effective average, and effective marginal...
imposed on each level of taxable income
Taxable income
Taxable income refers to the base upon which an income tax system imposes tax. Generally, it includes some or all items of income and is reduced by expenses and other deductions. The amounts included as income, expenses, and other deductions vary by country or system. Many systems provide that...
of a single (unmarried) individual under the 1954 Code:
| Income level | Tax rate | 2008 PPC Adjusted Income http://www.bea.gov/national/nipaweb/TableView.asp?SelectedTable=5&FirstYear=1954&LastYear=2008&Freq=Year |
|---|---|---|
| up to $2,000.00 | 20% | up to $37,500.00 |
| $2,000.01 - $4,000.00 | 22% | $37,500 - 75,000 |
| $4,000.01 - $6,000.00 | 26% | $75,000 - 112,500 |
| $6,000.01 - $8,000.00 | 30% | $112,500 - 150,000 |
| $8,000.01 - $10,000.00 | 34% | $150,000 - 187,500 |
| $10,000.01 - $12,000.00 | 38% | $187,500 - 225,000 |
| $12,000.01 - $14,000.00 | 43% | $225,000 - 262,500 |
| $14,000.01 - $16,000.00 | 47% | $262,500 - 300,000 |
| $16,000.01 - $18,000.00 | 50% | $300,000 - 337,500 |
| $18,000.01 - $20,000.00 | 53% | $337,500 - 375,000 |
| $20,000.01 - $22,000.00 | 56% | $375,000 - 412,500 |
| $22,000.01 - $26,000.00 | 59% | $412,500 - 487,500 |
| $26,000.01 - $32,000.00 | 62% | $487,500 - 600,000 |
| $32,000.01 - $38,000.00 | 65% | $600,000 - 712,500 |
| $38,000.01 - $44,000.00 | 69% | $712,500 - 825,000 |
| $44,000.01 - $50,000.00 | 72% | $825,000 - 937,500 |
| $50,000.01 - $60,000.00 | 75% | $937,500 - 1,125,000 |
| $60,000.01 - $70,000.00 | 78% | $1,125,000 - 1,312,500 |
| $70,000.01 - $80,000.00 | 81% | $1,312,500 - 1,500,000 |
| $80,000.01 - $90,000.00 | 84% | $1,500,000 - $1,687,500 |
| $90,000.01 - $100,000.00 | 87% | $1,687,500 - $1,875,000 |
| $100,000.01 - $150,000.00 | 89% | $1,875,000 - $2,812,500 |
| $150,000.01 - $ 200,000.00 | 90% | $2,812,500 - $3,750,000 |
| $200,000.01 or more | 91% | $3,750,000 or more |
- Source: Internal Revenue Code of 1954, (modified from text of the statute).
- Relative GDP: 37.5
Internal Revenue Code of 1986
References to the Internal Revenue Code in the United States CodeUnited States Code
The Code of Laws of the United States of America is a compilation and codification of the general and permanent federal laws of the United States...
and other statutes of Congress subsequent to 1954 generally mean Title 26 of the Code as amended. The basic structure of the Title 26 remained the same until the enactment of the comprehensive revision contained in Tax Reform Act of 1986
Tax Reform Act of 1986
The U.S. Congress passed the Tax Reform Act of 1986 to simplify the income tax code, broaden the tax base and eliminate many tax shelters and other preferences...
, although of course individual provisions of the law were changed on a regular basis.
Section 2 of the Tax Reform Act of 1986
Tax Reform Act of 1986
The U.S. Congress passed the Tax Reform Act of 1986 to simplify the income tax code, broaden the tax base and eliminate many tax shelters and other preferences...
provides (in part): Redesignation of 1954 Code. - The Internal Revenue Title enacted August 16, 1954, as heretofore, hereby, or hereafter amended, may be cited as the "Internal Revenue Code of 1986". References in Laws, Etc. - Except when inappropriate, any reference in any law, Executive order, or other document -
-
- (1) to the Internal Revenue Code of 1954 shall include a reference to the Internal Revenue Code of 1986, and
- (2) to the Internal Revenue Code of 1986 shall include a reference to the provisions of law formerly known as the Internal Revenue Code of 1954.
Thus, the 1954 Code was renamed the Internal Revenue Code of 1986 by section 2 of the Tax Reform Act of 1986
Tax Reform Act of 1986
The U.S. Congress passed the Tax Reform Act of 1986 to simplify the income tax code, broaden the tax base and eliminate many tax shelters and other preferences...
. The 1986 Act contained substantial amendments, but no formal re-codification. That is, the 1986 Code retained most of the same lettering and numbering of subtitles, chapters, subchapters, parts, subparts, sections, etc. The 1986 Code, as amended from time to time (and still published as title 26 of the United States Code), retains the basic structure of the 1954 Code.
Tax statutes not contained in the 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)Title 11 of the United States Code
Title 11 of the United States Code is the primary source of bankruptcy law in the United States Code.-Contents:Title 11 is subdivided into nine chapters. It used to include more chapters, but some of them have since been repealed in their entirety...
and title 28 (related to the judiciary)
Title 11 of the United States Code
Title 11 of the United States Code is the primary source of bankruptcy law in the United States Code.-Contents:Title 11 is subdivided into nine chapters. It used to include more chapters, but some of them have since been repealed in their entirety...
. 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).
Individual and corporate income tax
Section 1 of the Internal Revenue CodeInternal Revenue Code section 1
Section 1 of the Internal Revenue Code , titled "Tax Imposed" is the law that imposes a federal income tax on taxable income, and sets forth the amount of the tax to be paid...
imposes the Federal income tax on the taxable income of U.S. citizens and residents, and of estates and trusts. The corporate income tax is imposed by Internal Revenue Code section 11.
Organization
Since the IRC is a duplicate of the USC Title 26, 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)
- Sub-paragraph (B)
- Paragraph (2) Exception for local legislation
- Subsection (e): Denial of deduction for certain lobbying and political expenditures
- Section 162: Trade or business expenses
- Part VI: Itemized Deductions for Individuals and Corporations
- Subchapter B: Computation of Taxable Income
- Chapter 1: Normal Taxes and Surtaxes
The Internal Revenue Code is topically organized and generally referred to by section number (sections 1 through 9834). Some topics are short (e.g., tax rates) and some quite long (e.g., pension & benefit plans). The following describes the key topics, by section number:
| Sections | Function |
|---|---|
| 1-15 | Tax rates |
| 21-54 | Credits (refundable and nonrefundable) |
| 55-59A | Alternative Minimum Tax & environmental tax |
| 61-90 | Definition of gross income (before deductions), including items specifically taxable |
| 101-140 | Specific exclusions from gross income |
| 141-149 | Private activity bonds |
| 151-153 | Personal exemptions; dependent defined |
| 161-199 | Deductions, including interest, taxes, losses, and business related items |
| 211-224 | Itemized deductions for individuals |
| 241-250 | Deductions unique to corporations |
| 261-291 | Nondeductible items, including special rules limiting or deferring deductions |
| 301-386 | Corporate transactions, including formation, distributions, reorganizations, liquidations (Subchapter C) |
| 401-436 | Pension and benefit plans: treatment of plans, employers, & beneficiaries |
| 441-483 | Accounting methods & tax years |
| 501-530 | Exempt organizations (charitable and other) |
| 531-565 | Accumulated earnings tax and personal holding companies |
| 581-597 | Banks: special rules for certain items |
| 611-638 | Natural resources provisions: depletion, etc. |
| 641-692 | Trusts & estates: definitions, income tax on same & beneficiaries |
| 701-777 | Partnerships: definitions, treatment of entities and members, special rules (Subchapter K) |
| 801-858 | Insurance companies: special rules, definitions |
| 851-860 | Regulated investment companies (mutual funds) |
| 861-865 | Source of income (for international tax) |
| 871-898 | Tax on foreign persons/corporations; inbound international rules |
| 901-908 | Foreign tax credit |
| 911-943 | Exclusions of foreign income (mostly repealed) |
| 951-965 | Taxation of U.S. shareholders of controlled foreign corporations (Subpart F) |
| 971-999 | Other international tax provisions |
| 1001-1092 | Gains: definitions, characterization, and recognition; special rules |
| 1201-1298 | Capital gains: separate taxation and special rules |
| 1301-1359 | Interperiod adjustments; certain special rules |
| 1361-1388 | S Corporations and cooperative associations: flow-through rules |
| 1391-1400T | Empowerment, enterprise, and other special zones |
| 1401-1403 | Self employment tax (like social security, below) |
| 1441-1465 | Withholding of tax on nonresidents |
| 1501-1564 | Consolidated returns and affiliated groups (corporations) |
| 2001-2210 | Estate tax on transfers at death |
| 2501-2704 | Gift tax and tax on generation skipping transfers |
| 3101-3241 | Social security and railroad retirement taxes |
| 3301-3322 | Unemployment taxes |
| 3401-3510 | Income tax withholding; payment of employment taxes |
| 4001-5000 | Excise taxes on specific goods, transactions, and industries |
| 5001-5891 | Alcohol, tobacco and firearms taxes and special excise tax rules |
| 6001-6167 | Tax returns: requirements, procedural rules, payments, settlements, extensions |
| 6201-6533 | Assessment, collection, and abatement; limitations on collection & refund |
| 6601-6751 | Interest and non-criminal penalties on underpayments or failures |
| 6801-7124 | Other procedural rules |
| 7201-7344 | Crimes, other offences, forfeitures, tax evasion |
| 7401-7493 | Judicial proceedings |
| 7501-8023 | Miscellaneous rules |
| 9001-9833 | Special taxes & funds (presidential election, highway, black lung, etc.) |
Subtitles
- A. Income Taxes (sections 1 through 1564)
As a further example, here are the chapters of this subtitle:- Chapter 1—NORMAL TAXES AND SURTAXES (sections 1 through 1400U3)http://www.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_A_20_1.html
- Chapter 2—TAX ON SELF-EMPLOYMENT INCOME (sections 1401 through 1403)http://www.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_A_20_2.html
- Chapter 3—WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN CORPORATIONS (sections 1441 through 1464)http://www.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_A_20_3.html
- Chapter 4—Repealed
- Chapter 5—Repealed
- Chapter 6—CONSOLIDATED RETURNS (sections 1501 through 1564)http://www.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_A_20_6.html
- B. Estate and Gift Taxes (sections 2001 through 2801)
- 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 Election 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 Requirements (sections 9801 through 9834)
List of commonly-referenced sections
(This is not intended to be a complete list of sections.)- Subtitle A: Income Taxes (-)
- : Normal Taxes and Surtaxes (-)
- Subchapter A: Determination of Tax Liability (-)
- Part I: Tax on Individuals (-)
- Section 1Internal Revenue Code section 1Section 1 of the Internal Revenue Code , titled "Tax Imposed" is the law that imposes a federal income tax on taxable income, and sets forth the amount of the tax to be paid...
: Tax imposed - …
- Section 41: Credit for increasing research activitiesResearch & Experimentation Tax CreditInternal Revenue Code §41 known as the Research & Experimentation Tax Credit or the R&D Tax Credit is a general business tax credit for companies that are incurring R&D expenses in the United States. The R&D Tax Credit was originally introduced in the Economic Recovery Tax Act of 1981 sponsored by...
- …
- Section 1
- Part I: Tax on Individuals (-)
- Subchapter B: Computation of Taxable Income (-)
- Part I: Definition of Gross Income, Adjusted Gross Income, Taxable Income, Etc. (-)
- Section 61Internal Revenue Code section 61Section 61 of the Internal Revenue Code defines "gross income," the starting point for determining which items of income are taxable for federal income tax purposes in the United States. Section 61 states that "except as otherwise provided in this subtitle gross income means all income from...
: Gross income defined - …
- Section 63: Taxable income defined
- …
- Section 61
- Part II: Items Specifically Included in Gross Income (-)
- …
- Section 79Internal Revenue Code Section 79- Section 79 Plan :Section 79 of the Internal Revenue Code details the tax consequences and requirements for corporations wishing to install a Group-term life insurance plan. Permanent life insurance may also be offered as an added benefit in a Section 79 plan. Section 79 plans are non-qualified...
: Group-term life insurance purchased for employees - …
- Part III: Items Specifically Excluded from Gross Income (-)
- …
- Section 132(a)Internal Revenue Code Section 132(a)Internal Revenue Code Section 132 provides eight types of fringe benefits that are excluded from gross income. These include fringe benefits which qualify as a no-additional-cost service, qualified employee discount, working condition fringe, de minimis fringe, qualified transportation...
: Fringe benefits excluded from gross income - …
- Part VI: Itemized Deductions for Individuals and Corporations (-)
- …
- Section 162(2): Trade or business expenses
- …
- Section 179: Election to expense certain depreciable business assets
- …
- Section 183Internal Revenue Code section 183Section 183 of the United States Internal Revenue Code , sometimes referred to as the "hobby loss rule", limits the losses that can be deducted from income which are attributable to hobbies and other not-for-profit activities. Generally, losses which occur in for-profit activities are not limited...
: Activities Not Engaged in for Profit - …
- Part VII: Additional Itemized Deductions for Individuals (-)
- …
- Section 212Internal Revenue Code section 212Internal Revenue Code § 212 provides a deduction, for U.S. federal income tax purposes, for expenses incurred in investment activities. Taxpayers are allowed to deduct “all the ordinary and necessary expenses paid or incurred during the taxable year--...
: Expenses for production of income - …
- Part I: Definition of Gross Income, Adjusted Gross Income, Taxable Income, Etc. (-)
- Subchapter C: Corporate Distributions and Adjustments (-)
- …
- Part III: Corporate Organizations and Reorganizations (-)
- …
- Subpart B: Effects on Shareholders and Security Holders (-)
- …
- Section 355Internal Revenue Code section 355Section 355 of the Internal Revenue Code allows a corporation to make a tax-free distribution to its shareholders of stock and securities in one or more controlled subsidiaries. If a set of statutory and judicial requirements are met, neither the distributing corporation nor its shareholders...
: Distribution of stock and securities of a controlled corporation - …
- …
- Subchapter D: Deferred Compensation, Etc. (-)
- Part I: Pension, Profit-sharing, Stock Bonus Plas, etc. (-)
- Subpart A: General Rule (-)
- 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)401(k)A 401 is a type of retirement savings account in the United States, which takes its name from subsection of the Internal Revenue Code . A contributor can begin to withdraw funds after reaching the age of 59 1/2 years...
"): employer-sponsored retirement plan
- …
- Section 402A ("Roth 401(k)Roth 401(k)The Roth 401 is a type of retirement savings plan. It was authorized by the United States Congress under the Internal Revenue Code, section 402A, and represents a unique combination of features of the Roth IRA and a traditional 401 plan. As of January 1, 2006 U.S...
"): Optional treatment of elective deferrals as Roth contributions - Section 403: Taxation of employee annuities
- …
- paragraph (b) ("403(b)403(b)A 403 plan, also known as a tax-sheltered annuity, is a tax-advantaged retirement savings plan available for public education organizations, some non-profit employers , cooperative hospital service organizations, and self-employed ministers in the United States...
"): employer-sponsored retirement plan at non-profit organizations
- …
- Section 408: Individual Retirement AccountIndividual Retirement AccountAn individual retirement arrangement is the blanket term for a form of retirement plan that provides tax advantages for retirement savings in the United States...
s - Section 408A: Roth IRARoth IRAA Roth IRA is a special type of retirement plan under US law that is generally not taxed, provided certain conditions are met. The tax law of the United States allows a tax reduction on a limited amount of saving for retirement. The Roth IRA is named for its chief legislative sponsor, Senator...
s - …
- Section 409AInternal Revenue Code section 409ASection 409A of the Internal Revenue Code regulates the treatment for federal income tax purposes in the United States of “nonqualified deferred compensation” paid by a "service recipient" to a "service provider". Service recipients are generally employers, but those who hire independent...
: Inclusion in gross income of deferred compensation under nonqualified deferred compensation plans - …
- Section 401: Qualified pension, profit-sharing, and stock bonus plans
- Subpart A: General Rule (-)
- Part I: Pension, Profit-sharing, Stock Bonus Plas, etc. (-)
- Subchapter E: Accounting Periods and Methods of Accounting (-)
- …
- Part II: Methods of Accounting (-)
- Subpart B: Taxable Year for Which Items of Gross Income Included (-)
- …
- Section 457457 planThe 457 plan is a type of non-qualified tax advantaged deferred-compensation retirement plan that is available for governmental and certain non-governmental employers in the United States. The employer provides the plan and the employee defers compensation into it on a pre-tax basis...
: retirement plan for governmental and certain non governmental employers - …
- Subpart D: Inventories (-)
- …
- Section 475475 fundA section 475 fund is a hedge fund that elects to mark to market all its unrealized gains and losses, as allowed by the provisions of section 475 of the Internal Revenue Code. This can lead to a much faster recognition of gain, but also lessens the tax fees due to the high cost of performing the...
: Mark to market accounting method for dealers in securities
- …
- Subpart B: Taxable Year for Which Items of Gross Income Included (-)
- Subchapter F: Exempt Organizations (-)
- Part I: General Rule (-)
- Section 501: Exemption from tax on corporations, certain trusts, etc.
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- 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
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- Section 501: Exemption from tax on corporations, certain trusts, etc.
- Part VI: Political Organizations (§ 527)
- Section 527: Political organizations
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- Part VIII: Higher Education Savings Entities (-)
- Section 529: Qualified tuition programs529 planA 529 plan is a tax-advantaged investment vehicle in the United States designed to encourage saving for the future higher education expenses of a designated beneficiary.- Overview :529 plans are named after section 529 of the Internal Revenue Code...
- Section 530: Coverdell Education Savings AccountCoverdell Education Savings AccountA Coverdell Education Savings Account , is a tax-advantaged investment account in the United States designed to encourage savings to cover future education expenses A Coverdell Education Savings Account (also known as an Education Savings Account, a Coverdell ESA, a Coverdell Account, or just an...
s
- Section 529: Qualified tuition programs
- Part I: General Rule (-)
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- Subchapter N: Tax Based on Income From Sources Within or Without the United States (-)
- Part I: Source Rules and Other General Rules Relating To Foreign Income (-)
- Section 861: Income from sources within the United States
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- Part I: Source Rules and Other General Rules Relating To Foreign Income (-)
- Subchapter O: Gain or Loss on Disposition of Property (-)
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- Part III: Common Nontaxable Exchanges (-)
- Section 1031Internal Revenue Code section 1031Under Section 1031 of the United States Internal Revenue Code , the exchange of certain types of property may defer the recognition of capital gains or losses due upon sale, and hence defer any capital gains taxes otherwise due.-Summary:...
: Exchange of property held for productive use or investment - …
- Section 1041Internal Revenue Code Section 1041Section 1041 of the Internal Revenue Code addresses transfers of property between spouses or incident to divorce.- General Rule :The general rule in § 1041 is that no gain or loss shall be recognized on a transfer of property from an individual to a spouse or a former spouse if the transfer is...
: Transfers of Property Between Spouses or Incident to Divorce - …
- Section 1031
- Subchapter A: Determination of Tax Liability (-)
- : Normal Taxes and Surtaxes (-)
- Subtitle C: Employment Taxes (-)
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- : Collection of Income Tax at Source on Wages (-)
- Section 3401: Definitions
External links
- U.S. Code Title 26, via United States Government Printing OfficeUnited States Government Printing OfficeThe United States Government Printing Office is an agency of the legislative branch of the United States federal government. The office prints documents produced by and for the federal government, including the Supreme Court, the Congress, the Executive Office of the President, executive...
- Title 26 at Cornell's Legal Information Institute
- U.S. Code Title 26 - Cross Referencing