|
The first known income tax that Americans were legally required to pay
was enacted during the 1860s, and the Presidency of Abraham Lincoln.
The Civil War was proving very costly to fund, and the President and
Congress created the Commissioner of Revenue and enacted a law
requiring citizens to pay income tax.
Originally, the deadline for completing and filing your individual
income tax was not April 15th. In the beginning, it was first set for
March 1st. Then, during 1918, Congress pushed the date out to March
15th. Then, in the great overhaul of 1954, the date was once again
moved forward to April 15th, and this is where it remains today. But,
it has only been set this way for a little over 50 years. That’s not
very long, in historical terms, and it could possibly be changed again.
If you are an individual tax payer, you are required to file either a
return or an extension of time to file (Form 4868) by April 15th.
Corporate and other legal entities are required to file their tax
return by March 15th, and if not, they also must file an extension of
time to file. What this extension does not do, is to extend the amount
of time you have to pay any taxes due the government. So, if you are
unable to ready your personal or business financial information in a
timely manner, and have no reasonable estimate as to the amount of tax
you may owe, you can expect to pay some form of penalty.
In the years following WWII, the burden of tax responsibility was
shared fairly equally by the corporate world and the individual tax
payer. Today, however, the shift has been toward more responsibility on
the part of the individual, and less on the business backs. To
demonstrate how special interests have begun to overtake American
politics, during 1867, public opinion was so strong, and the outcry of
the general public so loud, that the President and Congress repealed
the income tax law, and from 1868 until 1913 almost all of the revenue
for government operation came from the sale of liquor, beer, wine, and
tobacco.
An interesting time during the formation and eventual taxation of
America occurred during 1918. Until that point in time, the vast
majority of revenue for government funding came from alcoholic beverage
sales. In 1919, Congress passed an amendment to the Constitution that
made it illegal to manufacture or sell alcohol; what would replace the
revenue? American income tax was the proposed solution, and we’ve been
paying since. Although during the great years known as Prohibition,
many “revenue agents” spent their days tracking down “moon shiners” not
tax evaders, the American citizen, the individual taxpayer took on the
heavy burden of supporting government revenue, and it has become
heavier with each passing year.
Then, during 1942, the Revenue Act of 1942 was passed and the “New
Deal” era was begun. Since that point in time, government control,
power, and expenditures has continued to increase at a phenomenal rate,
and today the American taxpayer supports a trillion dollar giant known
as the United States government. This ravenous beast consumes more than
10% of our earned income each year, and if the Social Security
Administration has their way, will continue to consumer even more of
our weekly earnings. We can foresee no other relief in sight.
Currently, all the tax regulations for this country are the
responsibility of the Internal Revenue Service, and there are four
major divisions of this government office: the Wage and Investment,
Small/Business Self-Employed, the Large and Midsize Business and the
Tax Exempt and Government Entities. Each division has responsibilities
as they pertain to their individual specialty. |