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 of enumeration.

— The Sixteenth Amendment

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Income Tax Act Article

The federal income tax was established by the 16th Amendment to the Constitution, which reads: "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."

The amendment was proposed by Congress in July, 1909, and declared law in February, 1913, after 36 of the then-48 states ratified it. Opponents of the tax, however, contend that the 16th amendment was improperly ratified by some of the states, and thus is invalid.

The Internal Revenue Service, which has long faced challenges to the income tax on legal grounds, has a 54-page bulletin on its website aimed at responding point by point to common arguments against the income tax.

The bulletin "The Truth About Frivolous Tax Arguments," was originally published at the main IRS Web site.



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Income Tax Act News

RM40bil collected in income tax (The New Straits Times)

The Inland Revenue Board (IRB) has collected about RM40 billion in income tax so far this year, chief executive officer and director-general Datuk Hasmah Abdullah said today.

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Rendell signs bill to consolidate tax collecting (The Sentinel)

The number of statewide earned income tax collectors would be reduced from 560 to 69, generally following county lines, under a bill signed Thursday by Gov. Ed Rendell.

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IRB Collects RM40 Bln In Income Tax (Malaysian National News Agency (BERNAMA))

KUALA LUMPUR, July 2 (Bernama) -- The Inland Revenue Board (IRB) has collected about RM40 billion in income tax so far this year, chief executive officer and director-general Datuk Hasmah Abdullah said Wednesday.

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Want to reduce tax burden? Gift money to dad (rediff.com)

As per the IT rules, all proofs establishing your income or expense or deductions have to be maintained for seven years from the end of the financial year it relates, says direct tax expert Vikas Gandhi.

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Foreign firms, investors required to pay dual tax (Business Recorder)

ISLAMABAD (July 04 2008): In addition to income tax, foreign companies and investors are now required to pay another 10 percent tax on transfer of profits by their subsidiaries or branches operating in Pakistan.

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Income tax collection methods draw plenty of opposing views (The Signal Item)

Some state lawmakers want to change how earned income taxes throughout Pennsylvania are collected. It's a discussion that shouldn't even be taking place, according to Scott Township officials.

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