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History of the US Income TaxCompiled by Ellen Terrell
OverviewIf, in the midst of sorting receipts and studying the latest changes in the US income tax laws, you suddenly wonder "What is the origin of this annual ritual in the weeks leading up to April 15th?" here are some places you can go for answers. 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 The tax was repealed ten years later.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. For additional information on the history of taxation in the United States, see the Fact Sheet: Taxes prepared by the U. S. Treassury on the history of the U.S. tax system. |
Above: | ||
 | Left: Letter dated January 3, 1862, from Treasury Secretary Salmon P. Chase to President Abraham Lincoln recommending
George S. Boutwell
for the newly-created post of Commissioner
of Internal Revenue. The Abraham Lincoln Papers at the Library of Congress, American Memory Collections. For a transcription of the letter see the taxhistory.org website. | ||
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. For further information on the choice of April 15th as the filing date see Yahoo! and Fortune "Great questions of our age: Why is tax day April 15?" by Jessica Sung. Fortune, Apr 15, 2002. (Volume 145, Issue 8; page. 64,). |
 Above: Original Form 1040 (1913) From OurDocuments.gov, a joint undertaking of the National Archives & Records Administration, National History Day, and the USA Freedom Corps. |
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Other Sources of InformationInternet
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Additional Reading: Print Resources
Library of Congress Catalog SearchesAdditional works on the history of the U.S. income tax in the Library of Congress may be identified by searching the Online Catalog under appropriate Library of Congress subject headings. Choose the topics you wish to search from the following list of Library of Congress subject headings to link directly to the Catalog and automatically execute a search for the subject selected. Please be aware that during periods of heavy use you may encounter delays in accessing the catalog. For assistance in locating other subject headings which relate to the business aspects of this subject, please consult a business reference librarian. For general inquiries relating to the legal aspects of the topic, please consult a legal reference librarian. Please note that the Library does not provide legal advice, interpretation, or analysis which could be interpreted as the practice of law. | |||
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