The Act of 1862
The Act of 1862 established the office of Commissioner of Internal Revenue. This Act gave the Internal Revenue Service (IRS) Commissioner the power and authority to:
- assess,
- levy,
- collect taxes, and
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the right to enforce the tax laws through seizure of property and income and through prosecution.
Amendment XVI
Amendment XVI (16th Amendment) of the United States Constitution established Congress’s right and legal authority to impose a federal income tax. Congress passed the 16th Amendment to the United States Constitution on July 2, 1909. The amendment was ratified February 3, 1913. Amendment XVI states:
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.
Tax Law 