TAX Time

History of the US Income Tax

Compiled by Ellen Terrell
Business Reference Services

Original Form 1040 (1913)

The origin of the income tax on individuals is generally cited as the passage of the 16th Amendment, passed by Congress on July 2, 1909, and ratified February 3, 1913; however, its history actually goes back even further. During the Civil War Congress passed the Revenue Act of 1861 which included a tax on personal incomes to help pay war expenses. The tax was repealed ten years later. However, in 1894 Congress enacted a flat rate Federal income tax, which was ruled unconstitutional the following year by the U.S. Supreme Court because it was a direct tax not apportioned according to the population of each state. The 16th amendment, ratified in 1913, removed this objection by allowing the Federal government to tax the income of individuals without regard to the population of each State.

Further reorganization came in the 1950s, replacing the patronage system with career employees. The IRS Restructuring and Reform Act of 1998 prompted the most comprehensive reorganization and modernization of IRS in nearly half a century and established a Taxpayer Advocate Service as an independent voice inside the agency on behalf of the taxpayer.

April 15th has not always been the filing deadline. March 1st was the date specified by Congress in 1913, after the passage of the 16th amendment. In 1918 Congress pushed the date forward to March 15th, where it remained until the tax overhaul of 1954, when the date was again moved ahead to April 15th. 

Can you GUESS what you get to do NEXT?

That's right......

......Your TAXES

Here's your W-2:

Now get started: First off, this is so EZ. You won't believe how EZ this assignment is....totally EZ, so EZ you could get it done in 10 min. and 40 sec. You might say it is so EZ and so 10:40 fast; that you could call it....

Oh, I don't know--maybe call it 1040EZ. Yeah, that's what I would call it.

Check out the site IRS.GOV -- since it is the IRS that collects TAXES for the Government, I would probably go there for some assistance and for some directions. Think you can find this and complete your taxes on your own? -- I think you can.

If NOT.... we'll go over it. See you on Monday!