tax law (United States)

tax law (United States)
Name	Tax law (United States)
Jurisdiction	United States
Legislation	Internal Revenue Code of 1986, Tax Reform Act of 1986, Revenue Act of 1913
Courts	United States Supreme Court, United States Tax Court, United States Court of Appeals for the Federal Circuit, United States Court of Appeals for the Ninth Circuit
Agency	Internal Revenue Service, Department of the Treasury
Enacted by	United States Congress

tax law (United States) Tax law in the United States comprises statutes, regulations, and judicial decisions governing taxation in the United States and the imposition of levies by federal, state, and local authorities. It intersects with institutions such as the Internal Revenue Service, the United States Department of the Treasury, and tribunals including the United States Tax Court, shaping fiscal policy after landmark statutes like the Revenue Act of 1913 and the Internal Revenue Code of 1986.

Overview

Federal tax law is codified primarily in the Internal Revenue Code of 1986 enacted by United States Congress and enforced by the Internal Revenue Service, with adjudication by the United States Tax Court and appeals to the United States Court of Appeals for the Federal Circuit and ultimately the United States Supreme Court. State taxation derives from state constitutions and statutes such as those in California State Assembly, New York State Legislature, and Texas Legislature, administered by agencies like the California Franchise Tax Board, New York State Department of Taxation and Finance, and Texas Comptroller of Public Accounts. International tax rules engage treaties such as the United States–United Kingdom Double Taxation Convention and forums like the Organisation for Economic Co-operation and Development where the Base Erosion and Profit Shifting project influenced policy decisions by actors including OECD Secretariat and G20 leaders.

Sources of Tax Law

Primary sources include statutes passed by United States Congress like the Tax Cuts and Jobs Act of 2017, regulations issued by the Department of the Treasury and Internal Revenue Service such as Treasury Regulations, and judicial opinions from the United States Tax Court, United States District Court for the Southern District of New York, and United States Supreme Court decisions such as South Dakota v. Wayfair, Inc. and Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc.. Administrative guidance includes Revenue Rulings, Revenue Procedures, and Private Letter Rulings from the Internal Revenue Service. Influential commentators and institutions include the Tax Foundation, Brookings Institution, American Bar Association, American Institute of Certified Public Accountants, and academics at Harvard Law School, Yale Law School, Stanford Law School, and New York University School of Law.

Types of Federal Taxes

Federal revenue streams include the individual income tax codified in the Internal Revenue Code of 1986, the corporate income tax applied to entities including General Electric Company and Apple Inc., the payroll tax funding Social Security (United States) and Medicare (United States), and excise taxes on goods such as those regulated after cases like United States v. United States Shoe Corp.. Other levies involve estate tax under precedents influenced by United States v. Kirby Lumber Co. and gift tax rules. Tax expenditures and credits—such as the Earned Income Tax Credit and Child Tax Credit—interact with programs administered by agencies like the Social Security Administration and policies debated by committees including the United States House Committee on Ways and Means and the United States Senate Committee on Finance.

Tax Procedure and Administration

Procedural rules originate from the Internal Revenue Code of 1986, Treasury Regulations, and administrative practices of the Internal Revenue Service, with oversight by officials such as the United States Secretary of the Treasury and commissioners confirmed by the United States Senate. Filing processes involve Form 1040 (U.S. Individual Income Tax Return), Form 1120 (U.S. Corporation Income Tax Return), and reporting to institutions like Financial Crimes Enforcement Network for compliance with Bank Secrecy Act obligations. Tax practice is regulated by licensure bodies including the American Institute of Certified Public Accountants and practice rules from the United States Tax Court Rules of Practice and Procedure.

Enforcement, Audits, and Litigation

Enforcement actions by the Internal Revenue Service include audits, levies, liens, and criminal referrals to the United States Department of Justice. Audit risk models draw on data from agencies like the Internal Revenue Service Criminal Investigation Division and cases litigated in forums such as the United States Tax Court, United States District Court for the Northern District of Illinois, and appeals to the United States Court of Appeals for the Seventh Circuit. Landmark enforcement decisions include opinions from the United States Supreme Court and circuit courts in matters involving tax shelter litigation, Franchise Tax Board of California v. Hyatt style disputes over state immunity, and constitutional challenges invoking the Sixteenth Amendment to the United States Constitution.

State and Local Taxation

States impose a variety of taxes: state income taxes in jurisdictions like California, New York (state), and Oregon, sales taxes administered by states such as Florida and Texas, property taxes levied by counties like Los Angeles County and Cook County (Illinois), and local excises set by municipalities including City of Chicago and City of New York. The Supreme Court’s decision in South Dakota v. Wayfair, Inc. reshaped remote sales taxation affecting retailers such as Amazon (company) and Walmart. Interstate issues involve the Commerce Clause litigation in courts like the United States Court of Appeals for the Second Circuit and state tax compacts negotiated through organizations like the Multistate Tax Commission.

Policy, History, and Reform Debates

Historical milestones include the Revenue Act of 1861, the Sixteenth Amendment to the United States Constitution, and reforms such as the Tax Reform Act of 1986 and Tax Cuts and Jobs Act of 2017. Policy debates involve economists and institutions such as Milton Friedman, John Maynard Keynes (influence on fiscal thought), Congressional Budget Office, Joint Committee on Taxation, and think tanks like the Urban Institute and Heritage Foundation. Contemporary reform proposals address base erosion discussed by the Organisation for Economic Co-operation and Development, wealth taxes proposed by politicians including Elizabeth Warren and Bernie Sanders, and debates over universal basic income pilot programs in states like California and Alaska.

Category:United States tax law