ANSWERS: 1
  • Federal income tax is defined as the national government collecting monies from its citizens to fund government projects and services.

    16th Amendment

    The 16th Amendment to the Constitution gives the Congress the right to collect taxes on income "from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration."

    IRS

    The roots of the Internal Revenue Service (IRS) go as far back as the Lincoln administration, but the 16th Amendment was not ratified until 1913. The IRS is a bureau of the Department of the Treasury.

    Purpose

    Federal programs such as Social Security or welfare are made possible from the collection of tax revenue. The federal government also uses tax money for creating infrastructure and roads within the nation.

    Taxpayers

    According to the IRS, taxpayers are required by law to pay their federal taxes. To meet this requirement, employment laws are set up to automatically withhold taxes from employee's earnings. Payroll withholding began during World War II, according to irs.gov.

    Enforcement

    The Treasury Department gives the IRS the right to enforce taxation. The IRS strives to ensure that citizens pay their taxes and are compliant with the law on this issue.

    Source:

    IRS

    Tax Policy Center

    BNET

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