Internal Revenue Code

The Internal Revenue Code (IRC) is the federal law governing tax laws in the United States. It outlines how income, property, and various transactions are taxed by the Internal Revenue Service (IRS). The IRC includes regulations on different types of taxes, such as income tax and corporate tax, and provides rules for deductions, credits, and tax liability. Essentially, it serves as the legal framework that determines how much individuals and businesses owe in taxes, how taxes are collected, and the penalties for non-compliance. Understanding the IRC is crucial for tax planning and compliance.