The Most Dreaded Day of the Year is Upon Us
April 15th is just hours away. Tax time, by far, is the most stressful time of the year for most Americans. The holidays, although stressful for many, at least have the promise of family and good food. Tax day? Not so much. Even when we’re anticipating a refund, we’re on pins and needles in hopes the IRS agrees with our own figures and forwards that check with our name on it.
So, in honor of Tax Day (I can hear the collective sighs now), a walk through history reveals some interesting facts. Broaden your horizons and who knows, it might not feel so intimidating after reading some of the history behind the nightmare we refer to as ‘IRS’.
Did you know the income tax was actually repealed at one time in 1872? President Lincoln, in his efforts to fund the Civil War, enacted the first income tax in 1862. Ten years later, it was repealed, only to be resuscitated in 1894 and then ruled unconstitutional in 1895 by the Supreme Court. It wasn’t until 1913, when Wyoming ratified the 16th Amendment by becoming the final state that constituted the three quarter majority necessary for the amendment, was the Bureau of Internal Revenue reborn. Of course, this allowed Congress to bring to life an income tax. From there, the first Form 1040 was created and can be seen here.
After that, the rates were modified drastically during both World War II and the Depression and each time the income tax was lowered after these dire financial times, it was never as low as it was before the increase.
In the 1950s, the name went from the Bureau of Internal Revenue to the Internal Revenue Service, or IRS. The president of the United States chooses the IRS commissioner. The massive restructuring that was said to have taken place in 1998 was due to incredible public pressure to lessen its overpowering and intimidating image. Its new image attempts to be more inviting or open to taxpayers seeking information or assistance.
So as we gear up to put yet another April 15th behind us, what does the IRS suggest we do if we anticipate problems with owing instead of being owed? If you have an accountant, or bookkeeper, be open with them. Allow their expertise to help you. If you’re doing your own taxes, you’re encouraged to contact the IRS with any problems or questions you have. The best way to contact anyone at the IRS? Their website at www.irs.gov is the first best place to start. If things are really bad, you’ll want to speak with a lawyer who’s experienced in back taxes and other IRS problems. Your lawyer can discuss any options for resolution and can work with the IRS on your behalf to put these problems behind you once and for all.



