Legal Definitions - Internal Revenue Code

The Internal Revenue Code, also known as "The Code," is a collection of federal laws related to taxes. These laws are compiled into Title 26 of the United States Code. The Code includes 11 sections that cover both the substantive and procedural aspects of federal tax law.

The largest section of the Code is Subtitle A, which provides rules for calculating and imposing federal income taxes. Other important sections include Subtitle B, which covers federal estate and gift taxes, Subtitle C, which covers federal employment taxes and the collection of federal income taxes, Subtitle D, which covers federal excise taxes, and Subtitle F, which covers the procedures and administration of federal taxes.

For example, if you earn income from a job, you will need to pay federal income taxes based on the rules outlined in Subtitle A of the Internal Revenue Code. If you receive a gift or inherit money, you may need to pay federal estate or gift taxes based on the rules outlined in Subtitle B. And if you own a business and have employees, you will need to pay federal employment taxes and follow the collection procedures outlined in Subtitle C.