106-710: 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
212-592: A confederation of independent states, functioning similarly to the European Union . Confederates generally saw the Union as being opposed to slavery, occasionally referring to them as abolitionists, in reference to the U.S. Navy as the "abolition fleet" and the U.S. Army as "abolition forces". In 2015, historian Michael Landis called for an end to the use of the term "Union", writing "The employment of 'Union' instead of 'United States,' implicitly supports
318-534: A Unitarian minister, and the social reformer Dorothea Dix . Systematic funding appeals raised public consciousness as well as millions of dollars. Many thousands of volunteers worked in the hospitals and rest homes, most famously poet Walt Whitman . Frederick Law Olmsted , a famous landscape architect, was the highly efficient executive director of the Sanitary Commission. States could use their own tax money to support their troops, as Ohio did. Under
424-431: A complete regiment. Not until Washington approved gubernatorial control of all new units was the problem resolved. Allan Nevins is particularly scathing of this in his analysis: "A President more exact, systematic and vigilant than Lincoln, a Secretary more alert and clearheaded than Cameron, would have prevented these difficulties." By the end of 1861, 700,000 soldiers were drilling in Union camps. The first wave in spring
530-575: 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
636-647: 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
742-408: 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
848-513: 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
954-488: 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,
1060-633: A modern railroad system, to be mobilized by the United States Military Railroad . The South had resisted policies such as tariffs to promote industry and homestead laws to promote farming because slavery would not benefit. With the South gone and Northern Democrats weak, the Republicans enacted their legislation. At the same time they passed new taxes to pay for part of the war and issued large amounts of bonds to pay for most of
1166-550: A national mission that has defined America ever since. Lincoln's charm and willingness to cooperate with political and personal enemies made Washington work much more smoothly than Richmond , the Confederate capital, and his wit smoothed many rough edges. Lincoln's cabinet proved much stronger and more efficient than Davis's, as Lincoln channeled personal rivalries into a competition for excellence rather than mutual destruction. With William Seward at State , Salmon P. Chase at
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#17327647866631272-407: 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
1378-535: 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
1484-467: 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
1590-802: 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
1696-473: 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
1802-444: 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
1908-550: 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
2014-608: 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
2120-869: The Morrill tariff , the Homestead Act , the Pacific Railroad Act , and the National Banking Act . Lincoln paid relatively little attention to this legislation as he focused on war issues but he worked smoothly with powerful Congressional leaders such as Thaddeus Stevens (on taxation and spending), Charles Sumner (on foreign affairs), Lyman Trumbull (on legal issues), Justin Smith Morrill (on land grants and tariffs) and William Pitt Fessenden (on finances). Military and reconstruction issues were another matter. Lincoln, as
2226-611: 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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#17327647866632332-793: 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,
2438-589: The Treasury , and (from 1862) Edwin Stanton at the War Department , Lincoln had a powerful cabinet of determined men. Except for monitoring major appointments and decisions, Lincoln gave them free rein to end the Confederate rebellion. The Republican Congress passed many major laws that reshaped the nation's economy, financial system, tax system, land system, and higher education system. These included:
2544-518: 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
2650-593: The 16th president of the United States , and sought to preserve the nation, a constitutional federal union . In the context of the Civil War, "Union" is also often used as a synonym for "the northern states loyal to the United States government". In this meaning, the Union included 20 free states (in the north and west) and four southern border slave states , Delaware , Maryland , Kentucky , and Missouri , though Missouri and Kentucky both had dual competing Confederate and Unionist governments. The Union Army
2756-610: The 1863 draft law led to riots in several cities and in rural areas as well. By far the most important were the New York City draft riots of July 13 to July 16, 1863. Irish Catholic and other workers fought police, militia and regular army units until the Army used artillery to sweep the streets. Initially focused on the draft, the protests quickly expanded into violent attacks on blacks in New York City, with many killed on
2862-487: 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
2968-453: 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
3074-457: 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
3180-457: 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
3286-518: The Confederacy gave paper promissory notes when it seized property, so that even loyal Confederates would hide their horses and mules rather than sell them for dubious paper. Overall, the Northern financial system was highly successful in raising money and turning patriotism into profit, while the Confederate system impoverished its patriots. The United States needed $ 3.1 billion to pay for
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3392-588: The Confederacy would never voluntarily rejoin the U.S. The most prominent Copperhead was Ohio's Clement L. Vallandigham , a Congressman and leader of the Democratic Party in Ohio. He was defeated in an intense election for governor in 1863. Republican prosecutors in the Midwest accused some Copperhead activists of treason in a series of trials in 1864. Copperheadism was a grassroots movement, strongest in
3498-474: The Confederacy. During the 37th and 38th Congresses, the committee investigated every aspect of Union military operations, with special attention to finding commanders culpable for military defeats. It assumed an inevitable Union victory. Failure was perceived to indicate evil motivations or personal failures. The committee distrusted graduates of the US Military Academy at West Point, since many of
3604-585: The Copperheads damaged the Union war effort by fighting the draft, encouraging desertion and forming conspiracies. However, other historians say the Copperheads were a legitimate opposition force unfairly treated by the government, adding that the draft was in disrepute and that the Republicans greatly exaggerated the conspiracies for partisan reasons. Copperheadism was a major issue in the 1864 presidential election—its strength waxed when Union armies were doing poorly and waned when they won great victories. After
3710-575: The Democrats gained control of the legislature, they were unable to impede the war effort. Republican Governor Oliver P. Morton was able to maintain control of the state's contribution to the war effort despite the Democratic majority. Washington was especially helpful in 1864 in arranging furloughs to allow Hoosier soldiers to return home so they could vote in elections. Across the North in 1864,
3816-552: 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
3922-484: 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
4028-538: The Lost Cause, Confederate view of secession wherein the nation of the United States collapsed [...] In reality, however, the United States never ceased to exist [...] The dichotomy of 'Union v. Confederacy' lends credibility to the Confederate experiment and undermines the legitimacy of the United States as a political entity." In 2021, the Army University Press noted that it was replacing usages of
4134-460: The Midwest and wanted to allow Confederate secession. In the East, opposition to the war was strongest among Irish Catholics, but also included business interests connected to the South typified by August Belmont . The Democratic Party was deeply split. In 1861 most Democrats supported the war. However, the party increasingly split down the middle between the moderates who supported the war effort, and
4240-532: 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
4346-477: The Republicans and War Democrats joined to campaign under the National Union Party banner, which also attracted most soldiers, and scored a landslide victory for Lincoln and his entire ticket against Democratic candidate George B. McClellan . The war years were quite prosperous except where serious fighting and guerrilla warfare ravaged the countryside. Almost all military actions took place in
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4452-435: The South. Michigan was especially eager to send thousands of volunteers. A study of the cities of Grand Rapids and Niles shows an overwhelming surge of nationalism in 1861, whipping up enthusiasm for the war in all segments of society, and all political, religious, ethnic, and occupational groups. However, by 1862 the casualties were mounting, and the war was increasingly focused on freeing the slaves in addition to preserving
4558-506: The South. Prosperity was stimulated by heavy government spending and the creation of an entirely new national banking system. The Union states invested a great deal of money and effort in organizing psychological and social support for soldiers' wives, widows, and orphans, and for the soldiers themselves. Most soldiers were volunteers, although after 1862 many volunteered in order to escape the draft and to take advantage of generous cash bounties on offer from states and localities. Draft resistance
4664-412: The U.S. Army firing grape shot down cobblestone city streets. The Democrats nominated George McClellan , a War Democrat for the 1864 presidential but imposed an anti-war platform on him. In terms of Congress the opposition against the war was nearly powerless—as was the case in most states. In Indiana and Illinois pro-war governors circumvented anti-war legislatures elected in 1862. For 30 years after
4770-460: The Union. Copperhead Democrats called the war a failure, and it became an increasingly partisan Republican effort. Michigan voters remained evenly split between the parties in the presidential election of 1864. Perman (2010) says historians are of two minds on why millions of men seemed so eager to fight, suffer, and die over four years: Some historians emphasize that Civil War soldiers were driven by political ideology, holding firm beliefs about
4876-664: The Union. Most Northern states had Republican governors who energetically supported the war effort and suppressed anti-war subversion, particularly that that arose in 1863–64. The Democratic Party strongly supported the war at the beginning in 1861, but by 1862, was split between the War Democrats and the anti-war element known as Peace Democrats, led by the extremist " Copperheads ". The Democrats made major electoral gains in 1862 in state elections, most notably in New York. They lost ground in 1863, especially in Ohio. In 1864,
4982-408: The academy's alumni were leaders of the enemy army. Members of the committee much preferred political generals with a satisfactory political record. Some of the committee suggested that West-Pointers who engaged in strategic maneuver were cowardly or even disloyal. It ended up endorsing incompetent but politically correct generals. The opposition came from Copperhead Democrats , who were strongest in
5088-526: The area just north of the Ohio River, as well as some urban ethnic wards . Some historians have argued that it represented a traditionalistic element alarmed at the rapid modernization of society sponsored by the Republican Party . It looked back to Jacksonian Democracy for inspiration—with ideals that promoted an agrarian rather than industrialized concept of society. Weber (2006) argues that
5194-470: 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
5300-514: The cost of a full-scale war but the Treasury Department under Secretary Salmon P. Chase showed unusual ingenuity in financing the war without crippling the economy. Many new taxes were imposed and always with a patriotic theme comparing the financial sacrifice to the sacrifices of life and limb. The government paid for supplies in real money, which encouraged people to sell to the government regardless of their politics. By contrast l,
5406-540: The critical post of state adjutant general was held in 1861–64 by elderly politician Anthony C. Colby (1792–1873) and his son Daniel E. Colby (1816–1891). They were patriotic, but were overwhelmed with the complexity of their duties. The state lost track of men who enlisted after 1861; it had no personnel records or information on volunteers, substitutes, or draftees, and there was no inventory of weaponry and supplies. Nathaniel Head (1828–1883) took over in 1864, obtained an adequate budget and office staff, and reconstructed
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#17327647866635512-574: 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
5618-485: The draft law as a violation of their local autonomy. In June 1863, small-scale disturbances broke out; they ended when the Army sent in armed units. The Union economy grew and prospered during the war while fielding a very large army and navy. The Republicans in Washington had a Whiggish vision of an industrial nation, with great cities, efficient factories, productive farms, all national banks, all knit together by
5724-407: 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
5830-931: The energetic leadership of Governor David Tod , a War Democrat who won office on a coalition "Union Party" ticket with Republicans, Ohio acted vigorously. Following the unexpected carnage at the battle of Shiloh in April 1862, Ohio sent three steamboats to the scene as floating hospitals equipped with doctors, nurses, and medical supplies. The state fleet expanded to 11 hospital ships, and the state set up 12 local offices in main transportation nodes, to help Ohio soldiers moving back and forth. The Christian Commission comprised 6,000 volunteers who aided chaplains in many ways. For example, its agents distributed Bibles, delivered sermons, helped with sending letters home, taught men to read and write, and set up camp libraries. The Army learned many lessons and modernized its procedures, and medical science—especially surgery—made many advances. In
5936-538: The entire United States of America. Using the term "Union" to apply to the non-secessionist side carried a connotation of legitimacy as the continuation of the pre-existing political entity. Before the American Civil War, the United States was known as the "United States' federal union", a union of states controlled by the federal government in Washington, D.C. This was opposite to the CSA's first government,
6042-488: The fall of Atlanta in September 1864, military success seemed assured and Copperheadism collapsed. Enthusiastic young men clamored to join the Union army in 1861. They came with family support for reasons of patriotism and excitement. Washington decided to keep the small regular army intact; it had only 16,000 men and was needed to guard the frontier. Its officers could, however, join the temporary new volunteer army that
6148-435: The fierce battles more typical of the political arena." Historian Michael Smith argues that as the war ground on year after year, the spirit of American republicanism grew stronger and generated fears of corruption in high places. Voters became afraid of power being centralized in Washington, extravagant spending, and war profiteering. Democratic candidates emphasized these fears. The candidates added that rapid modernization
6254-427: 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
6360-674: The governor appointed the senior officers, and Lincoln appointed the generals. Typically, politicians used their local organizations to raise troops and were in line (if healthy enough) to become colonel. The problem was that the War Department, under the disorganized leadership of Simon Cameron , also authorized local and private groups to raise regiments. The result was widespread confusion and delay. Pennsylvania, for example, had acute problems. When Washington called for 10 more regiments, enough men volunteered to form 30. However, they were scattered among 70 different new units, none of them
6466-579: The great majority of soldiers voted Republican. Men who had been Democrats before the war often abstained or voted Republican. As the federal draft laws tightened, there was serious unrest among Copperhead strongholds, such as the Irish in the Pennsylvania coal mining districts. The government needed the coal more than the draftees, so it ignored the largely non-violent draft dodging there. The violent New York City draft riots of 1863 were suppressed by
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#17327647866636572-460: The immense armies and fleets raised to fight the Civil War—over $ 400 million just in 1862 alone. Apart from tariffs, the largest revenue by far came from new excise taxes —a sort of value added tax —that was imposed on every sort of manufactured item. Second came much higher tariffs, through several Morrill tariff laws. Third came the nation's first income tax; only the wealthy paid and it
6678-486: The importance of liberty, Union, or state rights, or about the need to protect or to destroy slavery. Others point to less overtly political reasons to fight, such as the defense of one's home and family, or the honor and brotherhood to be preserved when fighting alongside other men. Most historians agree that, no matter what he thought about when he went into the war, the experience of combat affected him profoundly and sometimes affected his reasons for continuing to fight. On
6784-416: 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
6890-540: 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
6996-793: The leader of the moderate and conservative factions of the Republican Party, often crossed swords with the Radical Republicans , led by Stevens and Sumner. Author, Bruce Tap, shows that Congress challenged Lincoln's role as commander-in-chief through the Joint Committee on the Conduct of the War . It was a joint committee of both houses that was dominated by the Radical Republicans, who took a hard line against
7102-497: The legitimacy of the Confederacy's secession and maintained at all times that it remained entirely a part of the United States. In foreign affairs, the Union was the only side recognized by all other nations, none of which officially recognized the Confederate government. The term "Union" occurs in the first governing document of the United States, the Articles of Confederation and Perpetual Union. The subsequent Constitution of 1787
7208-651: The long run, the wartime experiences of the numerous Union commissions modernized public welfare, and set the stage for large—scale community philanthropy in America based on fund raising campaigns and private donations. Additionally, women gained new public roles. For example, Mary Livermore (1820–1905), the manager of the Chicago branch of the US Sanitary Commission, used her newfound organizational skills to mobilize support for women's suffrage after
7314-639: 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,
7420-400: The missing paperwork. As result, widows, orphans, and disabled veterans received the postwar payments they had earned. More soldiers died of disease than from battle injuries, and even larger numbers were temporarily incapacitated by wounds, disease, and accidents. The Union responded by building army hospitals in every state. The hygiene of the camps was poor, especially at the beginning of
7526-663: The much enlarged United States Army Medical Department, and the United States Sanitary Commission , a new private agency. Numerous other new agencies also targeted the medical and morale needs of soldiers, including the United States Christian Commission , as well as smaller private agencies, such as the Women's Central Association of Relief for Sick and Wounded in the Army (WCAR), founded in 1861 by Henry Whitney Bellows ,
7632-422: The muster of companies and regiments, the determined action of governors and legislatures. McClintock states: At the time, Northerners were right to wonder at the near unanimity that so quickly followed long months of bitterness and discord. It would not last throughout the protracted war to come—or even through the year—but in that moment of unity was laid bare the common Northern nationalism usually hidden by
7738-423: The parole exchange system broke down in 1863, about 195,000 went to Confederate prison camps. Some tried to escape but few succeeded. By contrast 464,000 Confederates were captured (many in the final days) and 215,000 imprisoned. Over 30,000 Union and nearly 26,000 Confederate prisoners died in captivity. Just over 12% of the captives in Northern prisons died, compared to 15.5% for Southern prisons. Discontent with
7844-631: The peace element, including Copperheads, who did not. It scored major gains in the 1862 elections, and elected the moderate Horatio Seymour as governor of New York. They gained 28 seats in the House of Representatives , including the Speaker of the House's seat but Republicans retained control of both the House and the Senate. The 1862 election for the Indiana legislature was especially hard-fought. Though
7950-451: 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
8056-527: 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
8162-432: The rebel Confederacy, but it took a long time for the Union to fully mobilize these resources. The attack on Fort Sumter rallied the North to the defense of American nationalism. Historian Allan Nevins writes: The thunderclap of Sumter produced a startling crystallization of Northern sentiment ... Anger swept the land. From every side came news of mass meetings, speeches, resolutions, tenders of business support,
8268-450: The rest. Economic historians attribute the remainder of the cost of the war to inflation. Congress wrote an elaborate program of economic modernization that had the dual purpose of winning the war and permanently transforming the economy. In 1860 the Treasury was a small operation that funded the small-scale operations of the government through land sales and customs based on a low tariff. Peacetime revenues were trivial in comparison with
8374-485: The revenue agency is usually styled as Commissioner, Minister, Secretary or Director. Union (American Civil War) The Union , colloquially known as the North , refers to the United States when eleven Southern slave states seceded to form the Confederate States of America (CSA), also known as the Confederacy or South, during the American Civil War . The Union was led by Abraham Lincoln ,
8480-425: The rifles, cannons, wagons, tents, telegraph sets, and the myriad of other special items the army needed. While business had been slow or depressed in spring 1861, because of war fears and Southern boycotts, by fall business was hiring again, offering young men jobs that were an alternative way to help win the war. Nonpartisanship was the rule in the first year, but by summer 1862, many Democrats had stopped supporting
8586-607: The rural slaveholding South. Additionally, the Union states had a manpower advantage of five to two at the start of the war. Year by year, the rebel Confederacy shrank and lost control of increasing quantities of resources and population. Meanwhile, the United States turned its growing potential advantage into a much stronger military force. However, much of the US strength had to be used to garrison former-Confederate areas, and to protect railroads and other vital points. The loyal states' great advantages in population and industry would prove to be vital long-term factors in its victory over
8692-498: The slave owners, as the guilty party in the war. Historians have overwhelmingly praised the "political genius" of Abraham Lincoln's performance as president. His first priority was military victory. This required that he master entirely new skills as a strategist and diplomat. He oversaw supplies, finances, manpower, the selection of generals, and the course of overall strategy. Working closely with state and local politicians, he rallied public opinion and (at Gettysburg ) articulated
8798-414: The streets. Small-scale riots broke out in ethnic German and Irish districts, and in areas along the Ohio River with many Copperheads. Holmes County, Ohio was an isolated parochial area dominated by Pennsylvania Dutch and some recent German immigrants. It was a Democratic stronghold and few men dared speak out in favor of conscription. Local politicians denounced Lincoln and Congress as despotic, seeing
8904-438: The surgeons prescribed coffee, whiskey, and quinine. Harsh weather, bad water, inadequate shelter in winter quarters, poor policing of camps, and dirty camp hospitals took their toll. This was a common scenario in wars from time immemorial, and conditions faced by the Confederate army were even worse. What was different in the Union was the emergence of skilled, well-funded medical organizers who took proactive action, especially in
9010-419: 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
9116-611: The war effort, and volunteering fell off sharply in their strongholds. The calls for more and more soldiers continued, so states and localities responded by offering cash bonuses. By 1863, a draft law was in effect, but few men actually were drafted and served, since the law was designed to get them to volunteer or hire a substitute. Others hid away or left the country. With the Emancipation Proclamation taking effect in January 1863, localities could meet their draft quota by sponsoring regiments of ex-slaves organized in
9222-408: The war the Democrats carried the burden of having opposed the martyred Lincoln, who was viewed by many as the salvation of the Union and the destroyer of slavery. The Copperheads were a large faction of northern Democrats who opposed the war, demanding an immediate peace settlement. They said they wanted to restore "the Union as it was" (that is, with the South and with slavery) but they realized that
9328-400: The war when men who had seldom been far from home were brought together for training with thousands of strangers. First came epidemics of the childhood diseases of chicken pox , mumps , whooping cough , and especially, measles . Operations in the South meant a dangerous and new disease environment, bringing diarrhea , dysentery , typhoid fever , and malaria . There were no antibiotics, so
9434-414: The war. She argued that women needed more education and job opportunities to help them fulfill their role of serving others. The Sanitary Commission collected enormous amounts of statistical data, and opened up the problems of storing information for fast access and mechanically searching for data patterns. The pioneer was John Shaw Billings (1838–1913). A senior surgeon in the war, Billings built two of
9540-633: The whole, the national, state, and local governments handled the avalanche of paperwork effectively. Skills developed in insurance and financial companies formed the basis of systematic forms, copies, summaries, and filing systems used to make sense of masses of human data. The leader in this effort, John Shaw Billings , later developed a system of mechanically storing, sorting, and counting numerical information using punch cards . Nevertheless, old-fashioned methodology had to be recognized and overcome. An illustrative case study came in New Hampshire, where
9646-469: The word "Union" with "Federal Government" or "U.S. Government". The Army University Press stated this was "more historically accurate" as "the term 'Union' always referred to all the states together." Unlike the Confederacy, the loyal areas of the United States had a relatively large industrialized and urbanized area in the Northeast, and more advanced commercial, transportation and financial systems than
9752-890: The world's most important libraries, Library of the Surgeon General's Office (now the National Library of Medicine ) and the New York Public Library ; he also figured out how to mechanically analyze data by turning it into numbers and punching onto the computer punch card, later developed by his student Herman Hollerith . Hollerith's company became International Business Machines (IBM) in 1911. Both sides operated prison camps; they handled about 400,000 captives, but many other prisoners were quickly released and never sent to camps. The Record and Pension Office in 1901 counted 211,000 Northerners who were captured. In 1861–63 most were immediately paroled; after
9858-478: Was a new formation comprising mostly state units, together with units from the regular U.S. Army . Keeping the southern border states in the Union was considered essential to its winning the war. The Northeast and Midwest provided the industrial resources for a mechanized war producing large quantities of munitions and supplies and financing the war. They provided soldiers, food, horses, financial support, and training camps. Army hospitals were also set up across
9964-566: Was called up for only 90 days, then the soldiers went home or reenlisted. Later waves enlisted for three years. The new recruits spent their time drilling in company and regiment formations. The combat in the first year, though strategically important, involved relatively small forces and few casualties. Sickness was a much more serious cause of hospitalization or death. In the first few months, men wore low quality uniforms made of "shoddy" material, but by fall, sturdy wool uniforms—in blue—were standard. The nation's factories were converted to produce
10070-422: 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"
10176-601: 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
10282-413: Was formed, with expectations that their experience would lead to rapid promotions. The problem with volunteering, however, was its serious lack of planning, leadership, and organization at the highest levels. Washington called on the states for troops, and every northern governor set about raising and equipping regiments, and sent the bills to the War Department. The men could elect the junior officers, while
10388-590: Was issued and ratified in the name not of the states, but of "We the People of the United States, in order to form a more perfect Union ..." Union , for the United States of America, is then repeated in such clauses as the Admission to the Union clause in Article IV, Section 3. Even before the Civil War began the phrase "preserve the Union" was commonplace, and a "union of states" had been used to refer to
10494-670: 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
10600-526: 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
10706-585: Was notable in some larger cities, especially in parts of New York City , with its massive anti-draft riots of July 1863 and in some remote districts such as the Coal Region of Northeastern Pennsylvania . In the context of the American Civil War , the Union, or the United States, is sometimes referred to as "the North", both then and now, as opposed to the Confederacy, which was often called "the South". The Union (the United States) never recognized
10812-460: 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
10918-486: 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
11024-505: 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
11130-413: Was putting too much political power in the hands of Eastern financiers and industrialists. They warned that the abolition of slavery would bring a flood of freed blacks into the labor market of the North. Republicans responded with charges of defeatism. They indicted Copperheads for criminal conspiracies to free Confederate prisoners of war and played on the spirit of nationalism and the growing hatred of
11236-480: 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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