Federal Income Tax Code & Regulations
The U.S. tax code contains the regulations governing the assessment of income tax, keeping income tax records, filing income tax returns and the payment of income tax. The tax code is administered and enforced by the Internal Revenue Service, or IRS.
Other People Are Reading
-
Items Considered Part of Gross Income
-
Chapter 26 of the U.S. Tax Code defines the regulations governing income tax. Section 61 of chapter 1 defines income that must be included as part of gross income when you complete a tax return. This includes income from rent, interest, royalties, dividends and pension income.
Items Excluded From Gross Income
-
Chapter 1, part III of the Tax Code lists items of income that are not considered part of a person's gross income for tax purposes. These items include income received from state and local bonds, compensation for injury or sickness and inheritances and gifts.
-
Net Earnings From Self-Employment
-
Self-employment earnings are defined in chapter 2, section 1402 of the Tax Code. All gross income from any trade, or any business, carried out by a person, less deductible amounts, such as previous operating losses, is considered to be a person's net income.
Period for Computing Taxable Income
-
Taxable income, used to compute a person's income tax liability, is based on a period of one year and this period is known as a taxable year. A taxable year can be a calendar year, which ends on December 31 each year, or a fiscal year, as defined by the tax payer.
Returns For A Period of Less Than One Year
-
A period of less than one year is known as a short period and section 443 of chapter 1 of the Tax Code allows a taxpayer to file a short period return, for reasons including the change over from a fiscal year to a calendar year tax period, or vice-versa.
-
References
Resources
- Photo Credit Department of Treasury Building image by dwight9592 from Fotolia.com
