116-677: The Internal Revenue Service ( IRS ) is the revenue service for the United States federal government , which is responsible for collecting U.S. federal taxes and administering the Internal Revenue Code , the main body of the federal statutory tax law. It is an agency of the Department of the Treasury and led by the Commissioner of Internal Revenue , who is appointed to a five-year term by
232-623: A Reconstruction belief that the government could protect civil and political rights . In the American Civil War , eleven Southern states, all of which permitted slavery , seceded from the United States following the election of Lincoln to the presidency and formed the Confederate States of America . Though Lincoln initially declared secession "legally void" and declined to negotiate with Confederate delegates to Washington, following
348-629: A coalition of freedmen, supportive white Southerners , and Northern transplants . They were opposed by " Redeemers ," who sought to restore white supremacy and reestablish the Democratic Party 's control of Southern governments and society. Violent groups, including the Ku Klux Klan , the White League , and the Red Shirts , engaged in paramilitary insurgency and terrorism to disrupt the efforts of
464-776: A component of Reconstruction, the Interior Department ordered a meeting of representatives from all Indian tribes who had affiliated with the Confederacy. The council, the Southern Treaty Commission , was first held in Fort Smith, Arkansas in September 1865, and was attended by hundreds of Native Americans representing dozens of tribes. Over the next several years the commission negotiated treaties with tribes that resulted in additional re-locations to Indian Territory and
580-575: A courtroom via criminal prosecutions to curtail the activities of some of these groups, IRS can do by administrative action." By 1986, limited electronic filing of tax returns was possible. The Internal Revenue Service Restructuring and Reform Act of 1998 ("RRA 98") changed the organization from geographically oriented to an organization based on four operating divisions. It added "10 deadly sins" that require immediate termination of IRS employees found to have committed certain misconduct. Enforcement activities declined. The IRS Oversight Board noted that
696-627: A crook. I've earned everything I've got." So controversial was this leak, that most later US presidents released their tax returns (though sometimes only partially). These returns can be found online at the Tax History Project. By the end of the Second World War, the IRS was handling sixty million tax returns each year, using a combination of mechanical desk calculators, accounting machines , and pencil and paper forms. In 1948 punch card equipment
812-408: A decline in the number of paper returns being processed each year. As a result, the IRS implemented a consolidation plan for its paper tax return processing centers, closing five of its ten processing centers between 2003 and 2011. The agency closed two more centers - one in 2019 and another in 2021 - as e-file use continued to expand. E-filed tax returns accounted for 90% of all returns submitted during
928-607: A devastating economic and material impact on the South, where most combat occurred. The enormous cost of the Confederate war effort took a high toll on the region's economic infrastructure. The direct costs in human capital , government expenditures, and physical destruction totaled $ 3.3 billion. By early 1865, the Confederate dollar had nearly zero value, and the Southern banking system
1044-506: A government agency." Requard admitted that he saw the returns but denied that he leaked them. Reporter Jack White of The Providence Journal won the Pulitzer Prize for reporting about Nixon's tax returns. Nixon, with a salary of $ 200,000, paid $ 792.81 in federal income tax in 1970 and $ 878.03 in 1971, with deductions of $ 571,000 for donating "vice-presidential papers". This was one of the reasons for his famous statement: "Well, I'm not
1160-590: A low of $ 80 in 1879. By the end of the 19th century and well into the 20th century, the South was locked into a system of poverty. How much of this failure was caused by the war and by previous reliance on slavery remains the subject of debate among economists and historians. In both the North and South, modernization and industrialization were the focus of the post-war recovery, built on the growth of cities, railroads, factories, and banks and led by Radical Republicans and former Whigs. From its origins, questions existed as to
1276-483: A messy tax season on several fronts. The email was sent by IRS Commissioner Koskinen to workers. Koskinen predicted the IRS would shut down operations for two days later that year which would result in unpaid furloughs for employees and service cuts for taxpayers . Koskinen also said delays to IT investments of more than $ 200 million may delay new taxpayer protections against identity theft . Also in January 2015,
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#17328369973651392-407: A new login and ID verification process for several of its online tools, including general account access, Identity Protection (IP) PIN setup, and payment plan applications. As part of the agency's Identity, Credential, and Access Management (ICAM) initiative, the process included the use of third-party facial recognition technologies to confirm taxpayer identities. The facial recognition requirement
1508-521: A plan put forward by President Truman , with the approval of Congress. The reorganization decentralized many functions to new district offices which replaced the collector's offices. Civil service directors were appointed to replace the politically appointed collectors of the Bureau of Internal Revenue. Not long after, the bureau was renamed the Internal Revenue Service. In 1954 the filing deadline
1624-783: A policy of "malice toward none" announced in his second inaugural address, Lincoln asked voters only to support the Union in the future, regardless of the past. Lincoln pocket vetoed the Wade–Davis Bill, which was much more strict than the ten percent plan. Following Lincoln's veto, the Radicals lost support but regained strength after Lincoln's assassination in April 1865. Upon President Lincoln's assassination in April 1865, Vice President Andrew Johnson became president. Radicals considered Johnson to be an ally, but upon becoming president, he rejected
1740-464: A report critical of the lack of protection of privacy in TAS, and the project was abandoned in 1978. In 1995, the IRS began to use the public Internet for electronic filing. Since the introduction of e-filing , self-paced online tax services have flourished, augmenting the work of tax accountants, who were sometimes replaced. By 2002, more than a third of all tax returns were filed electronically. This led to
1856-437: A result, a system of sharecropping was developed, in which landowners broke up large plantations and rented small lots to the freedmen and their families. Thus, the main structure of the Southern economy changed from an elite minority of landed gentry slaveholders into a tenant farming agriculture system. Historian David W. Blight identified three visions of the social implications of Reconstruction: The Civil War had
1972-787: A result, the IRS now functions under four major operating divisions: The Large Business & International (LB&I) division was known as the Large and Mid-Size Business division prior to a name change on October 1, 2010. The IRS is headquartered in Washington, D.C. , and does most of its computer programming in Maryland. It processes paper tax returns sent by mail and e-filed tax returns at three IRS center locations: Austin, Texas; Kansas City, Missouri; and Ogden, Utah. The IRS also operates computer centers in three locations: Detroit, Michigan; Martinsburg, West Virginia; and Memphis, Tennessee. The IRS
2088-539: A status like new territories. Sumner argued that secession had destroyed statehood but the Constitution still extended its authority and its protection over individuals, as in existing U.S. territories . The Republicans sought to prevent Johnson's Southern politicians from "restoring the historical subordination of Negroes". Since slavery was abolished, the Three-fifths Compromise no longer applied to counting
2204-536: Is 1877, when the federal government withdrew the last troops stationed in the South as part of the Compromise of 1877. Later dates have also been suggested. Fritzhugh Brundage proposed in 2017 that Reconstruction ended in 1890, when Republicans failed to pass the Lodge Bill to secure voting rights for Black Americans in the South. Heather Cox Richardson argued that same year for a periodization from 1865 until 1920, when
2320-470: Is blamed for $ 4 billion worth of fraudulent 2012 tax refunds by the IRS. Fraudulent claims were made with the use of stolen taxpayer identification and Social Security numbers, with returns sent to addresses both in the US and internationally. Following the release of the findings, the IRS stated that it resolved most of the identity theft cases of 2013 within 120 days, while the average time to resolve cases from
2436-415: Is credited with restoring the federal Union, limiting reprisals against the South, and establishing a legal framework for racial equality via the constitutional rights to national birthright citizenship , due process , equal protection of the laws , and male suffrage regardless of race. The Reconstruction era has typically been dated from the end of the American Civil War in 1865 until the withdrawal of
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#17328369973652552-444: Is currently led by Daniel Werfel , who became Commissioner of Internal Revenue on March 13, 2023. He succeeded Douglas O'Donnell , who served as Acting Commissioner of Internal Revenue after Charles P. Rettig 's term as Commissioner ended on November 12, 2022. There have been 50 commissioners of Internal Revenue and 28 acting commissioners since the agency's creation in 1862. From May 22, 2013, to December 23, 2013, senior official at
2668-691: Is great danger that ... the liberating slaves of traitorous owners, will alarm our Southern Union friends, and turn them against us—perhaps ruin our fair prospect for Kentucky." After Frémont refused to rescind the emancipation order, Lincoln terminated him from active duty on November 2, 1861. Lincoln was concerned that the border states would secede from the Union if slaves were given their freedom. On May 26, 1862, Union Major General David Hunter emancipated slaves in South Carolina, Georgia , and Florida, declaring all "persons ... heretofore held as slaves ... forever free". Lincoln, embarrassed by
2784-414: The de facto creation (initially by treaty) of an unorganized Oklahoma Territory . President Lincoln signed two Confiscation Acts into law, the first on August 6, 1861, and the second on July 17, 1862, safeguarding fugitive slaves who crossed from the Confederacy across Union lines and giving them indirect emancipation if their masters continued insurrection against the United States. The laws allowed
2900-476: The American Civil War , President Abraham Lincoln and Congress passed the Revenue Act of 1862 , creating the office of Commissioner of Internal Revenue and enacting a temporary income tax to pay war expenses. The Revenue Act of 1862 was passed as an emergency and temporary war-time tax. It copied a relatively new British system of income taxation, instead of trade and property taxation. The first income tax
3016-595: The American Civil War . The temporary measure funded over a fifth of the Union's war expenses before being allowed to expire a decade later. In 1913, the Sixteenth Amendment to the U.S. Constitution was ratified, authorizing Congress to impose a tax on income and leading to the creation of the Bureau of Internal Revenue . In 1953, the agency was renamed the Internal Revenue Service, and in subsequent decades underwent numerous reforms and reorganizations, most significantly in
3132-591: The Confederate States Army surrendered and the Southern states repealed secession and accepted the Thirteenth Amendment —most of which happened by December 1865. Lincoln broke with the Radicals in 1864. The Wade–Davis Bill of 1864 passed in Congress by the Radicals was designed to permanently disfranchise the Confederate element in the South. The bill asked the government to grant African American men
3248-488: The Confederate assault on the Union garrison at Fort Sumter , Lincoln declared that "an extraordinary occasion" existed in the South and raised an army to quell "combinations too powerful to be suppressed by the ordinary course of judicial proceedings." Over the next four years, 237 named battles were fought between the Union and Confederate armies, resulting in the dissolution of the Confederate States in 1865. During
3364-651: The Emancipation Proclamation , Port Royal Experiment , and the earnest debate of Reconstruction policies during the Civil War. By 2017, among scholars it was "widely understood" in the words of Luke Harlow, that Reconstruction started in either "1863 with the Emancipation Proclamation or 1865 with the end of the war". The Reconstruction Era National Historical Park proposed 1861 as a starting date, interpreting Reconstruction as beginning "as soon as
3480-620: The Hampton Roads Conference . In August 1862, Lincoln met with African American leaders and urged them to colonize some place in Central America . Lincoln planned to free the Southern slaves in the Emancipation Proclamation and he was concerned that freedmen would not be well treated in the United States by Whites in both the North and South. Although Lincoln gave assurances that the United States government would support and protect any colonies that were established for former slaves,
3596-601: The Office of Management and Budget Daniel Werfel was acting Commissioner of Internal Revenue. Werfel, who attended law school at the University of North Carolina and attained a master's degree from Duke University , prepared the government for a potential shutdown in 2011 by determining which services that would remain in existence. No IRS commissioner has served more than five years and one month since Guy Helvering, who served 10 years until 1943. The most recent commissioner to serve
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3712-596: The Reconstruction Acts of 1867 which outlined the terms in which the rebel states would be readmitted to the Union. Under these acts Republican Congress established military districts in the South and used Army personnel to administer the region until new governments loyal to the Union—that accepted the Fourteenth Amendment and the right of freedmen to vote—could be established. Congress temporarily suspended
3828-707: The Supreme Court declared the Income Tax of 1894 unconstitutional in Pollock v. Farmers' Loan & Trust Co. , a decision that contradicted Hylton v. United States . The federal government scrambled to raise money. In 1906, with the election of President Theodore Roosevelt , and later his successor William Howard Taft , the United States saw a populist movement for tax reform. This movement culminated during then-candidate Woodrow Wilson 's election of 1912 and in February 1913,
3944-473: The Wade–Davis Bill in opposition, which instead proposed that a majority of voters must pledge that they had never supported the Confederate government and disfranchised all those who had. Lincoln vetoed the Wade–Davis Bill, but it established a lasting conflict between the presidential and congressional visions of reconstruction. In addition to the legal status of the seceded states, Congress debated
4060-518: The principle of taxation generally. In recent years, the agency has struggled with budget cuts, under-staffed workforce, outdated technology and reduced morale, all of which collectively result in the inappropriate enforcement of tax laws against high earners and large corporations , reduced tax collection, rising deficits , lower spending on important priorities, or further tax increases on compliant taxpayers to compensate for lost revenue . Research shows that IRS audits raise revenue, both through
4176-468: The 1866 midterm elections, gaining large majorities in both houses of Congress . In 1867 and 1868, the Radical Republicans passed the Reconstruction Acts over Johnson's vetoes, setting out the terms by which the former Confederate states could be readmitted to the Union. Constitutional conventions held throughout the South gave Black men the right to vote. New state governments were established by
4292-480: The 1990s. Since its establishment, the IRS has been largely responsible for collecting the revenue needed to fund the United States federal government, with the rest being funded either through the U.S. Customs and Border Protection (collecting duties and tariffs ) or the Federal Reserve (purchasing U.S. treasuries ). The IRS faces periodic controversy and opposition over its methods, constitutionality, and
4408-453: The 2011/2012 tax period was 312 days. In September 2014, IRS Commissioner John Koskinen expressed concern over the organization's ability to handle Obamacare and administer premium tax credits that help people pay for health plans from the health law's insurance exchanges. It will also enforce the law's individual mandate , which requires most Americans to hold health insurance. In January 2015, Fox News obtained an email which predicted
4524-452: The 2021 filing season. In 2003, the IRS struck a deal with tax software vendors: The IRS would not develop online filing software and, in return, software vendors would provide free e-filing to most Americans. In 2009, 70% of filers qualified for free electronic filing of federal returns. According to an inspector general's report, released in November 2013, identity theft in the United States
4640-457: The 2023 fiscal year, the agency processed more than 271.4 million tax returns including more than 163.1 million individual income tax returns. For FY 2023, the IRS collected approximately $ 4.7 trillion, which is approximately 96 percent of the operational funding for the federal government; funding widely throughout to different aspects of American society , from education and healthcare to national defense and infrastructure. In July 1862, during
4756-475: The Black community on education, the majority of Blacks had achieved literacy. Sumner soon concluded that "there was no substantial protection for the freedman except in the franchise". This was necessary, he stated, "(1) For his own protection; (2) For the protection of the white Unionist; and (3) For the peace of the country. We put the musket in his hands because it was necessary; for the same reason we must give him
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4872-462: The Confederacy. During the war, a war among pro-Union and anti-Union Native Americans had raged. Congress passed a statute that gave the president the authority to suspend the appropriations of any tribe if the tribe is "in a state of actual hostility to the government of the United States ;... and, by proclamation, to declare all treaties with such tribe to be abrogated by such tribe". As
4988-540: The Deputy in this position assists and acts on behalf of the IRS Commissioner in directing, coordinating and controlling the policies, programs and activities of the IRS. This includes establishing tax administration policy and developing strategic issues and objectives for IRS strategic management. Revenue service A revenue service , revenue agency or taxation authority is a government agency responsible for
5104-478: The IRS was tasked with enforcement of laws relating to prohibition of alcohol sales and manufacture ; this was transferred to the jurisdiction of the Department of Justice in 1930. After repeal in 1933, the IRS resumed collection of taxes on beverage alcohol. The alcohol, tobacco and firearms activities of the bureau were segregated into the Bureau of Alcohol, Tobacco, Firearms and Explosives in 1972. A new tax act
5220-469: The Ironclad Oath, which would effectively have allowed no former Confederates to vote. Historian Harold Hyman says that in 1866 congressmen "described the oath as the last bulwark against the return of ex-rebels to power, the barrier behind which Southern Unionists and Negroes protected themselves". Radical Republican leader Thaddeus Stevens proposed, unsuccessfully, that all former Confederates lose
5336-598: The North during the Grant administration. The 1876 presidential election was marked by widespread Black voter suppression in the South, and the result was close and contested. An Electoral Commission resulted in the Compromise of 1877 , which awarded the election to Republican Rutherford B. Hayes on the understanding that federal troops would be withdrawn from the South, effectively bringing Reconstruction to an end. Post-Civil War efforts to enforce federal civil rights protections in
5452-505: The Pierpont government separated the northwestern counties of the state and sought admission as West Virginia .) As additional territory came under Union control, reconstructed governments were established in Tennessee, Arkansas, and Louisiana. Debates over legal reconstruction focused on whether secession was legally valid, the implications of secession for the nature of the seceded states, and
5568-518: The President of the United States. The duties of the IRS include providing tax assistance to taxpayers; pursuing and resolving instances of erroneous or fraudulent tax filings; and overseeing various benefits programs, including the Affordable Care Act . The IRS originates from the Commissioner of Internal Revenue , a federal office created in 1862 to assess the nation's first income tax to fund
5684-690: The Radical program of Reconstruction. He was on good terms with ex-Confederates in the South and ex- Copperheads in the North. He appointed his own governors and tried to close the Reconstruction process by the end of 1865. Thaddeus Stevens vehemently opposed Johnson's plans for an abrupt end to Reconstruction, insisting that Reconstruction must "revolutionize Southern institutions, habits, and manners .... The foundations of their institutions ... must be broken up and relaid, or all our blood and treasure have been spent in vain." Johnson broke decisively with
5800-649: The Reconstruction governments and terrorize Republicans. Congressional anger at President Johnson's repeated attempts to veto radical legislation led to his impeachment , but he was not removed from office. Under Johnson's successor, President Ulysses S. Grant , Radical Republicans passed additional legislation to enforce civil rights, such as the Ku Klux Klan Act and the Civil Rights Act of 1875 . However, continuing resistance to Reconstruction by Southern whites and its high cost contributed to its losing support in
5916-559: The Republicans in Congress when he vetoed the Civil Rights Act on March 27, 1866. While Democrats celebrated, the Republicans rallied, passed the bill again, and overrode Johnson's repeat veto. Full-scale political warfare now existed between Johnson (now allied with the Democrats) and the Radical Republicans. Since the war had ended, Congress rejected Johnson's argument that he had the war power to decide what to do. Congress decided it had
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#17328369973656032-689: The Sea Islands who became free overnight on November 7, 1861, after the Battle of Port Royal when all the white residents and slaveholders fled the area after the arrival of the Union. After the Battle of Port Royal, reconstruction policies were implemented under the Port Royal Experiment which were education , landownership , and labor reform. This transition to a free society was called "Rehearsal for Reconstruction." The conventional end of Reconstruction
6148-412: The South ended in 1890 with the failure of the Lodge Bill . Historians continue to disagree about the legacy of Reconstruction. Criticism of Reconstruction focuses on the early failure to prevent violence, corruption, starvation, disease, and other problems. Some consider the Union's policy toward freed slaves as inadequate and its policy toward former slaveholders as too lenient. However, Reconstruction
6264-492: The South would gain additional seats in Congress. If Blacks were denied the vote and the right to hold office, then only Whites would represent them. Many, including most White Southerners, Northern Democrats , and some Northern Republicans, opposed voting rights for African-Americans. The small fraction of Republican voters opposed to Black suffrage contributed to the defeats of several suffrage measures voted on in most Northern states. Some Northern states that had referendums on
6380-1089: The South; some of them were men who had escaped to the North and gained educations, and returned to the South. They did not hold office in numbers representative of their proportion in the population, but often elected Whites to represent them. The question of women's suffrage was also debated but was rejected. Women eventually gained the right to vote with the Nineteenth Amendment to the United States Constitution in 1920. From 1890 to 1908, Southern states passed new state constitutions and laws that disenfranchised most Blacks and tens of thousands of poor Whites with new voter registration and electoral rules. When establishing new requirements such as subjectively administered literacy tests , in some states, they used " grandfather clauses " to enable illiterate Whites to vote. The Five Civilized Tribes that had been relocated to Indian Territory (now part of Oklahoma ) held Black slaves and signed treaties supporting
6496-427: The Union (derisively called " scalawags " by White Democrats), and Northerners who had migrated to the South (derisively called " carpetbaggers ")—some of whom were returning natives, but were mostly Union veterans—organized to create constitutional conventions. They created new state constitutions to set new directions for Southern states. Congress had to consider how to restore to full status and representation within
6612-687: The Union captured territory in the Confederacy" at Fort Monroe in Virginia and in the Sea Islands of South Carolina . According to historians Downs and Masur, "Reconstruction began when the first US soldiers arrived in slaveholding territory, and enslaved people escaped from plantations and farms, some of them fleeing into free states, and others trying to find safety with US forces." Soon afterwards, early discourse and experimentation began in earnest regarding Reconstruction policies. The Reconstruction policies provided opportunities to enslaved Gullah populations in
6728-424: The Union those Southern states that had declared their independence from the United States and had withdrawn their representation. Suffrage for former Confederates was one of two main concerns. A decision needed to be made whether to allow just some or all former Confederates to vote (and to hold office). The moderates in Congress wanted virtually all of them to vote, but the Radicals resisted. They repeatedly imposed
6844-559: The Union, hostile to loyal Unionists, and enemies of the Freedmen. Radicals used as evidence outbreaks of mob violence against Black people, such as the Memphis riots of 1866 and the New Orleans massacre of 1866 . Radical Republicans demanded a prompt and strong federal response to protect freedmen and curb Southern racism. Stevens and his followers viewed secession as having left the states in
6960-484: The United States. During this period, three amendments were added to the United States Constitution to grant citizenship and equal civil rights to the newly freed slaves . To circumvent these legal achievements, the former Confederate states imposed poll taxes and literacy tests and engaged in terrorism to intimidate and control black people and to discourage or prevent them from voting. Throughout
7076-596: The ability to vote of approximately 10,000 to 15,000 former Confederate officials and senior officers, while constitutional amendments gave full citizenship to all African Americans, and suffrage to the adult men. With the power to vote, freedmen began participating in politics. While many enslaved people were illiterate, educated Blacks (including fugitive slaves ) moved down from the North to aid them, and natural leaders also stepped forward. They elected White and Black men to represent them in constitutional conventions. A Republican coalition of freedmen, Southerners supportive of
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#17328369973657192-415: The administration of Reconstruction under presidential control, rather than that of the increasingly unsympathetic Radical Congress. On March 3, 1862, Lincoln installed a loyalist Democrat, Senator Andrew Johnson, as military governor with the rank of brigadier general in his home state of Tennessee. In May 1862, Lincoln appointed Edward Stanly military governor of the coastal region of North Carolina with
7308-516: The adversary [Radicals in Congress], and set an example the other states will follow." Charles Sumner and Thaddeus Stevens, leaders of the Radical Republicans, were initially hesitant to enfranchise the largely illiterate freedmen. Sumner preferred at first impartial requirements that would have imposed literacy restrictions on Blacks and Whites. He believed that he would not succeed in passing legislation to disenfranchise illiterate Whites who already had
7424-456: The balance of power, giving the Republicans two-thirds majorities in both houses of Congress, and enough votes to overcome Johnson's vetoes. They moved to impeach Johnson because of his constant attempts to thwart Radical Reconstruction measures, by using the Tenure of Office Act . Johnson was acquitted by one vote, but he lost the influence to shape Reconstruction policy. In 1867, Congress passed
7540-409: The change to the Constitution. It was further ratified by six more states by March. Of the 48 states at the time, 42 ratified it. Connecticut, Rhode Island, and Utah rejected the amendment; Pennsylvania, Virginia, and Florida did not take up the issue. Though the constitutional amendment to allow the federal government to collect income taxes was proposed by President Taft in 1909, the 16th Amendment
7656-432: The colonies were able to remain self-sufficient. Frederick Douglass , a prominent 19th-century American civil rights activist, criticized Lincoln by stating that he was "showing all his inconsistencies, his pride of race and blood, his contempt for Negroes and his canting hypocrisy". African Americans, according to Douglass, wanted citizenship and civil rights rather than colonies. Historians are unsure if Lincoln gave up on
7772-524: The confiscation of lands for colonization from those who aided and supported the rebellion. However, these laws had limited effect as they were poorly funded by Congress and poorly enforced by Attorney General Edward Bates . In August 1861, Major General John C. Frémont , Union commander of the Western Department, declared martial law in Missouri , confiscated Confederate property, and emancipated their slaves. Lincoln immediately ordered Frémont to rescind his emancipation declaration, stating: "I think there
7888-448: The decline in enforcement activities has "rais[ed] questions about tax compliance and fairness to the vast majority of citizens who pay all their taxes". In June 2012, the IRS Oversight Board recommended to Treasury a fiscal year 2014 budget of $ 13.074 billion for the Internal Revenue Service. On December 20, 2017, Congress passed the Tax Cuts and Jobs Act of 2017 . It was signed into law by President Trump on December 22, 2017. In
8004-407: The editorial board of The New York Times called the IRS budget cuts penny-wise-and-pound-foolish, where for every dollar of cuts in the budget, six were lost in tax revenue. A 2020 Treasury Department audit found the IRS had improved its identity verification system offerings for taxpayers, but was still behind in fully meeting digital identity requirements. The following year, the IRS announced
8120-487: The election of Warren G. Harding to the presidency marked the end of a national sentiment in favor of using government power to promote equality. In 2024, Manisha Sinha periodized Reconstruction from 1860—when Abraham Lincoln won office as a president opposed to slavery—until 1920, when America ratified the Nineteenth Amendment to the United States Constitution affirming the right of women to vote, which Sinha called "the last Reconstruction amendment" because it drew upon
8236-502: The extinction of slavery in twenty years". On March 26, 1862, Lincoln met with Senator Charles Sumner and recommended that a special joint session of Congress be convened to discuss giving financial aid to any border states who initiated a gradual emancipation plan. In April 1862, the joint session of Congress met; however, the border states were not interested and did not make any response to Lincoln or any congressional emancipation proposal. Lincoln advocated compensated emancipation during
8352-500: The final remaining federal troops stationed in the Southern United States in 1877, though a few other periodization schemes have also been proposed by historians. In the twentieth century, most scholars of the Reconstruction era began their review in 1865, with the end of formal hostilities between the North and South. However, in his landmark 1988 monograph Reconstruction , historian Eric Foner proposed 1863, starting with
8468-427: The form and the IRS checked the form for accuracy. The IRS's workload jumped by ten-fold, triggering a massive restructuring. Professional tax collectors began to replace a system of "patronage" appointments. The IRS doubled its staff but was still processing 1917 returns in 1919. Income tax raised much of the money required to finance the war effort; in 1918 a new Revenue Act established a top tax rate of 77%. In 1919
8584-450: The former Confederate states? What was the citizenship status of the leaders of the Confederacy? What was the citizenship and suffrage status of freedmen? After the war ended, President Andrew Johnson gave back most of the land to the former White slave owners. By 1866, the faction of Radical Republicans led by Representative Thaddeus Stevens and Senator Charles Sumner was convinced that Johnson's Southern appointees were disloyal to
8700-442: The franchise." The support for voting rights was a compromise between moderate and Radical Republicans. The Republicans believed that the best way for men to get political experience was to be able to vote and to participate in the political system. They passed laws allowing all male freedmen to vote. In 1867, Black men voted for the first time. Over the course of Reconstruction, more than 1,500 African Americans held public office in
8816-505: The ground that a loyal Negro is more worthy than a disloyal White man." As president in 1865, Johnson wrote to the man he appointed as governor of Mississippi, recommending: "If you could extend the elective franchise to all persons of color who can read the Constitution in English and write their names, and to all persons of color who own real estate valued at least two hundred and fifty dollars, and pay taxes thereon, you would completely disarm
8932-497: The idea of African American colonization at the end of 1863 or if he actually planned to continue this policy up until 1865. Starting in March 1862, in an effort to forestall Reconstruction by the Radicals in Congress, Lincoln installed military governors in certain rebellious states under Union military control. Although the states would not be recognized by the Radicals until an undetermined time, installation of military governors kept
9048-416: The initial audit and indirectly by deterring future tax cheating. According to a 2024 study, "an additional $ 1 spent auditing taxpayers above the 90th income percentile yields more than $ 12 in revenue, while audits of below-median income taxpayers yield $ 5." As of 2018, it saw a 15 percent reduction in its workforce , including a decline of more than 25 percent of its enforcement staff. Nevertheless, during
9164-466: The institution of slavery, Congress passed the Confiscation Acts to seize Confederates' slaves, providing a precedent for president Abraham Lincoln to issue the Emancipation Proclamation . Congress later established a Freedmen's Bureau to provide much-needed food and shelter to the newly freed slaves. As it became clear that the war would end in a Union victory, Congress debated the process for
9280-540: The intake of government revenue , including taxes and sometimes non-tax revenue . Depending on the jurisdiction , revenue services may be charged with tax collection , investigation of tax evasion , or carrying out audits . In certain instances, they also administer payments to certain relevant individuals (such as statutory sick pay, statutory maternity pay) as well as targeted financial support ( welfare ) to families and individuals (through payment of tax credits or transfer payments ). The chief executive of
9396-495: The leaders declined the offer of colonization. Many free Blacks had been opposed to colonization plans in the past because they wanted to remain in the United States. Lincoln persisted in his colonization plan in the belief that emancipation and colonization were both part of the same program. By April 1863, Lincoln was successful in sending Black colonists to Haiti as well as 453 to Chiriqui in Central America; however, none of
9512-500: The legal and social inequality of the races in the United States. The end of the war was accompanied by a large migration of newly freed people to the cities, where they were relegated to the lowest paying jobs, such as unskilled and service labor. Men worked as rail workers, rolling and lumber mills workers, and hotel workers. Black women were largely confined to domestic work employed as cooks, maids, and child nurses, or in hotels and laundries. The large population of slave artisans during
9628-645: The legal consequences for Confederate veterans and others who had engaged in "insurrection and rebellion" against the government and the legal rights of those freed from slavery. These debates resulted in the Reconstruction Amendments to the United States Constitution. During the Civil War, the Radical Republican leaders argued that slavery and the Slave Power had to be permanently destroyed. Moderates said this could be easily accomplished as soon as
9744-404: The legal significance of the Civil War, whether secession had actually occurred, and what measures, if any, were necessary to restore the governments of the Confederate States. For example, throughout the conflict, the United States government recognized the legitimacy of a unionist government in Virginia led by Francis Harrison Pierpont out of Wheeling . (This recognition was rendered moot when
9860-558: The legitimate method of their readmission to the Union. The first plan for legal reconstruction was introduced by Lincoln in his Proclamation of Amnesty and Reconstruction, the so-called " ten percent plan " under which a loyal unionist state government would be established when ten percent of its 1860 voters pledged an oath of allegiance to the Union, with a complete pardon for those who pledged such an oath. By 1864, Louisiana, Tennessee, and Arkansas had established fully functioning Unionist governments under this plan. However, Congress passed
9976-633: The longest term was Doug Shulman, who was appointed by President George W. Bush and served for five years. The Commissioner of Internal Revenue is assisted by two deputy commissioners. The Deputy Commissioner for Operations Support reports directly to the Commissioner and oversees the IRS's integrated support functions, working to facilitate economy of scale efficiencies and better business practices. The Deputy also administers and provides executive leadership for customer service, processing, tax law enforcement and financial management operations. Additionally,
10092-524: The order, rescinded Hunter's declaration and canceled the emancipation. On April 16, 1862, Lincoln signed a bill into law outlawing slavery in Washington, D.C., and freeing the estimated 3,500 slaves in the city. On June 19, 1862, he signed legislation outlawing slavery in all U.S. territories. On July 17, 1862, under the authority of the Confiscation Acts and an amended Force Bill of 1795, he authorized
10208-402: The population of Blacks. After the 1870 Census, the South would gain numerous additional representatives in Congress, based on the full population of freedmen. One Illinois Republican expressed a common fear that if the South were allowed to simply restore its previous established powers, that the "reward of treason will be an increased representation". The election of 1866 decisively changed
10324-517: The prewar period did not translate into a large number of free artisans during Reconstruction. The dislocations had a severe negative impact on the Black population, with a large amount of sickness and death. During the war, Lincoln experimented with land reform by giving land to African-Americans in South Carolina . Having lost their enormous investment in slaves, plantation owners had minimal capital to pay freedmen workers to bring in crops. As
10440-410: The primary authority to decide how Reconstruction should proceed, because the Constitution stated the United States had to guarantee each state a republican form of government . The Radicals insisted that meant Congress decided how Reconstruction should be achieved. The issues were multiple: Who should decide, Congress or the president? How should republicanism operate in the South? What was the status of
10556-447: The public. His tax advisor, Edward L. Morgan, became the fourth law-enforcement official to be charged with a crime during Watergate . John Requard Jr., accused of leaking the Nixon tax returns, collected delinquent taxes in the slums of Washington. In his words: "We went after people for nickels and dimes, many of them poor and in many cases illiterate people who didn't know how to deal with
10672-536: The rate of damage in smaller towns was much lower. Farms were in disrepair, and the prewar stock of horses, mules, and cattle was much depleted. Forty percent of Southern livestock had been killed. The South's farms were not highly mechanized, but the value of farm implements and machinery according to the 1860 Census was $ 81 million and was reduced by 40% by 1870. The transportation infrastructure lay in ruins, with little railroad or riverboat service available to move crops and animals to market. Railroad mileage
10788-447: The ratification of the Sixteenth Amendment to the United States Constitution : The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration. This granted Congress the specific power to impose an income tax without regard to apportionment among the states by population. By February 1913, 36 states had ratified
10904-429: The readmission of the seceded states. Radical and moderate Republicans disagreed over the nature of secession, the conditions for readmission, and the desirability of social reforms as a consequence of the Confederate defeat. Lincoln favored the " ten percent plan " and vetoed the radical Wade–Davis Bill , which proposed strict conditions for readmission. Lincoln was assassinated on April 14, 1865, just as fighting
11020-405: The recruitment of freed slaves into the U.S. Army and seizure of any Confederate property for military purposes. In an effort to keep border states in the Union, Lincoln, as early as 1861, designed gradual compensated emancipation programs paid for by government bonds. Lincoln desired Delaware , Maryland , Kentucky , and Missouri to "adopt a system of gradual emancipation which should work
11136-437: The revenue agency is usually styled as Commissioner, Minister, Secretary or Director. Reconstruction era The Reconstruction era was a period in United States history and Southern United States history that followed the American Civil War and was dominated by the legal, social, and political challenges of the abolition of slavery and the reintegration of the eleven former Confederate States of America into
11252-534: The right to vote and that anyone who willingly gave weapons to the fight against the United States should be denied the right to vote. The bill required voters, fifty-one percent of White males, to take the Ironclad Oath swearing that they had never supported the Confederacy or been one of its soldiers. This oath also entailed having them to swear a loyalty to the Constitution and the Union before they could have state constitutional meetings. Lincoln blocked it. Pursuing
11368-412: The right to vote for five years. The compromise that was reached disenfranchised many Confederate civil and military leaders. No one knows how many temporarily lost the vote, but one estimate placed the number as high as 10,000 to 15,000. However, Radical politicians took up the task at the state level. In Tennessee alone, over 80,000 former Confederates were disenfranchised. Second, and closely related,
11484-534: The subject limited the ability of their own small populations of Blacks to vote. Lincoln had supported a middle position: to allow some Black men to vote, especially U.S. Army veterans. Johnson also believed that such service should be rewarded with citizenship. Lincoln proposed giving the vote to "the very intelligent, and especially those who have fought gallantly in our ranks". In 1864, Governor Johnson said: "The better class of them will go to work and sustain themselves, and that class ought to be allowed to vote, on
11600-419: The three decades since 1991, the IRS had a substantial decrease in the number of employees per million residents, decreasing from 451 (in 1991) to 237 (in 2021). A decrease of 47.5 percent. From the 1950s through the 1970s, the IRS began using technology such as microfilm to keep and organize records. Access to this information proved controversial, when President Richard Nixon's tax returns were leaked to
11716-530: The vote. In the South, many poor Whites were illiterate as there was almost no public education before the war. In 1880, for example, the White illiteracy rate was about 25% in Tennessee, Kentucky, Alabama, South Carolina, and Georgia, and as high as 33% in North Carolina. This compares with the 9% national rate, and a Black rate of illiteracy that was over 70% in the South. By 1900, however, with emphasis within
11832-405: The war zone ensured the system would be ruined at war's end. Restoring the infrastructure—especially the railroad system—became a high priority for Reconstruction state governments. Over a quarter of Southern White men of military age—the backbone of the White workforce—died during the war, leaving their families destitute, and per capita income for White Southerners declined from $ 125 in 1857 to
11948-405: The war, Lincoln issued the Emancipation Proclamation, which declared that "all persons held as slaves" within the Confederate territory "are, and henceforward shall be free." The Civil War had immense social implications for the United States. Emancipation had altered the legal status of 3.5 million persons, threatened the end of the plantation economy of the South, and provoked questions regarding
12064-470: The war, the Union was confronted with the issue of how to administer areas it captured and how to handle the steady stream of slaves who were escaping to Union lines. In many cases, the United States Army played a vital role in establishing a free labor economy in the South, protecting freedmen's legal rights, and creating educational and religious institutions. Despite its reluctance to interfere with
12180-436: Was drawing to a close . He was replaced by President Andrew Johnson . Johnson vetoed numerous Radical Republican bills, he pardoned thousands of Confederate leaders, and he allowed Southern states to pass draconian Black Codes that restricted the rights of freedmen. His actions outraged many Northerners and stoked fears that the Southern elite would regain its political power. Radical Republican candidates swept to power in
12296-422: Was dropped in 2022, however, following privacy concerns from government officials and the public. Alternative ID verification options have since been introduced with the goal of making IRS online tools accessible to more people. As early as the year 1918, the Bureau of Internal Revenue began using the name "Internal Revenue Service" on at least one tax form. In 1953, the name change to the "Internal Revenue Service"
12412-578: Was formalized in Treasury Decision 6038. The 1980s saw a reorganization of the IRS. A bipartisan commission was created with several mandates, among them to increase customer service and improve collections. Congress later enacted the Internal Revenue Service Restructuring and Reform Act of 1998 , which mandated that the agency replace its geographic regional divisions with units that serve particular categories of taxpayers. As
12528-439: Was in collapse by the war's end. Where scarce Union dollars could not be obtained, residents resorted to a barter system. The Confederate States in 1861 had 297 towns and cities, with a total population of 835,000 people; of these, 162, with 681,000 people, were at some point occupied by Union forces. Eleven cities were destroyed or severely damaged by military action, including Atlanta, Charleston, Columbia, and Richmond, though
12644-462: Was located mostly in rural areas; over two-thirds of the South's rails, bridges, rail yards, repair shops, and rolling stock were in areas reached by Union armies, which systematically destroyed what they could. Even in untouched areas, the lack of maintenance and repair, the absence of new equipment, the heavy over-use, and the deliberate relocation of equipment by the Confederates from remote areas to
12760-644: Was moved from March 15 to April 15. The Tax Reform Act of 1969 created the Alternative Minimum Tax . In 1969, Richard Nixon directed the IRS to audit his political opponents, as well as opponents of US involvement in the Vietnam War . The IRS's Activist Organizations Committee, later renamed the Special Services Staff, created a target list of more than 1,000 organizations and 4,000 individuals. A White House memo said that "What we cannot do in
12876-519: Was not ratified until 1913, just before the start of the First World War . That same year, the first edition of the 1040 form was introduced. A copy of the 1913 form can be viewed online and shows that only those with annual incomes of at least $ 3,000 (equivalent to $ 92,500 in 2023) were instructed to file an income tax return. In the first year after the ratification of the 16th Amendment, no taxes were collected. Instead, taxpayers simply completed
12992-460: Was passed in 1862: By the end of the war, 10% of Union households had paid some form of income tax, and the Union raised 21% of its war revenue through income taxes. After the Civil War, Reconstruction , railroads, and transforming the North and South war machines towards peacetime required public funding. However, in 1872, seven years after the war, lawmakers allowed the temporary Civil War income tax to expire. Income taxes evolved, but in 1894
13108-478: Was passed in 1942 as the United States entered the Second World War . This act included a special wartime surcharge. The number of American citizens who paid income tax increased from about four million in 1939 to more than forty-two million by 1945. In 1952, after a series of politically damaging incidents of tax evasion and bribery among its own employees, the Bureau of Internal Revenue was reorganized under
13224-494: Was phased out. Information processing in the IRS systems of the late 1960s was in batch mode; microfilm records were updated weekly and distributed to regional centers for handling tax inquiries. A project to implement an interactive, realtime system, the "Tax Administration System", was launched, that would provide thousands of local interactive terminals at IRS offices. However, the General Accounting Office prepared
13340-426: Was the issue of whether the 4 million freedmen were to be received as citizens: Would they be able to vote? If they were to be fully counted as citizens, some sort of representation for apportionment of seats in Congress had to be determined. Before the war, the population of slaves had been counted as three-fifths of a corresponding number of free Whites. By having 4 million freedmen counted as full citizens,
13456-480: Was used. The first trial of a computer system for income tax processing was in 1955, when an IBM 650 installed at Kansas City processed 1.1 million returns. The IRS was authorized to proceed with computerization in 1959 and purchased IBM 1401 and IBM 7070 systems for local and regional data processing centers. The Social Security number was used for taxpayer identification starting in 1965. By 1967, all returns were processed by computer and punched card data entry
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