Here's the next installment of our exciting IRS history series – the story behind all those taxes you have to pay.
We know you were on the edge of your seats.
We left off in 1913, when the 16th Amendment finally made the income tax constitutional – and the very first Form 1040 was unleashed upon the world. (Imagine that first Form 1040. Did anyone have any idea all the trouble it would cause? Of course not. It's fun to imagine how innocent things were back then.)
After that, things got interesting. Did you know….
- Starting in 1919, the IRS (then known as the Bureau of Internal Revenue) was one of the primary government agencies tasked with enforcing Prohibition. As always, the IRS is in the business of spoiling people's fun. (Eleven years later, the Department of Justice took over this thankless job.)
- In 1931, the IRS Intelligence Unit was also responsible for finally putting away gangster Al Capone – by tracking him down and charging him with tax evasion. This has to go down as one of the greatest "But…. But…. But…." moments in history.
- After Prohibition, the IRS took over responsibility for administering the National Firearms Act. Alcohol, guns, and gangsters – all part of a day's work for the Internal Revenue Service, apparently.
Sadly, after those early years, the Wild West of the IRS settled down into the endless sea of papers and regulations that we know today. Some "highlights" of these years include:
- 1942 – The "Revenue Act" increased taxes and introduced medical and investment deductions.
- 1943 – The "Current Tax Payment Act" introduced the requirement for employers to withhold taxes from their employees' wages.
- 1953 – The Bureau of Internal Revenue officially became the IRS.
- 1954 – "Tax Day" moved from March 15th to April 15th, where it's been ever since.
- 1972 – The last traces of the Wild West disappeared when the Alcohol, Tobacco and Firearms division of the IRS split off and became a separate organization (the Independent Bureau of Alcohol, Firearms and Tobacco).
After that, it's pretty much been business as usual.
But it's up to us to keep the legend alive.
If you have any questions about the IRS, or about the Wild West, don't hesitate to give us a call at 844-841-9857, or schedule a free consultation here.