Warning
Info
Warning
Info
Simple English definitions for legal terms
Internal Revenue Code (IRC)
Read a random definition: liberal
A quick definition of Internal Revenue Code (IRC):
The Internal Revenue Code (IRC) is a set of laws in the United States that governs how taxes are collected and administered. It has 11 parts, each covering different types of taxes. The agency responsible for enforcing the IRC is the Internal Revenue Service (IRS). The IRC determines what types of income and activities are subject to taxation, and sets out the penalties for failing to pay taxes. Breaking the IRC can result in fines or even imprisonment, depending on the severity of the offense.
A more thorough explanation:
The Internal Revenue Code (IRC) is a set of laws that govern federal tax administration and collection in the United States. It is part of the United States Code (USC) and has 11 subtitles that cover different areas of taxation, such as income taxes, employment taxes, and health plan requirements.
The Internal Revenue Service (IRS) is the agency responsible for implementing the IRC. The IRC determines what interests and rights are subject to taxation, and it cannot be applied retroactively. Violating the IRC can result in criminal or civil penalties, depending on the type of tax and the amount of money involved.
For example, if a taxpayer willfully fails to pay taxes, they can be fined up to $10,000 or imprisoned for up to five years. This shows how the IRC sets the consequences for violating tax laws and emphasizes the importance of complying with them.