The Internal Revenue Code (IRC) is the domestic portion of federal statutory tax law in the United States, and is under Title 26 of the United States Code (USC). The IRC has 11 subtitles, including income taxes, employment taxes, coal industry health benefits, and group health plan requirements. The implementing agency of IRC is the Internal Revenue Service (IRS).
IRC is the governing law of federal tax administration and collection. State law creates legal interests and rights, but IRC designates what interests and rights shall be taxed. Like criminal laws, IRC cannot be applied retroactively.
The punishment of violating IRC is regulated under chapter 75. A violation of IRC can be a crime or a civil offense, depending on what kind of tax the taxpayer evades, and the amount of money involved. For example, if a taxpayer fails to pay taxes willfully, they can be fined not more than $10,000, or imprisoned not more than 5 years.
[Last updated in April of 2023 by the Wex Definitions Team]