Article Facts

Each year, Americans pay their federal income taxes. As part of our legal and civil duty, we file our taxes and pay the government in return for certain services, such as military defense. However, have you wondered how the idea of income tax came about? Who was responsible for this idea?

The Founding Fathers allowed for Congress to impose taxes through Article 1, Section 8, Clause 1 of our United States Constitution. The first personal income tax was imposed on August 5, 1861 to help offset the cost of the American Civil War. It was enacted as part of the Revenue Act of 1861 and essentially taxed three percent of any income over $800. It was later repealed by another enacted tax in 1862.

Perhaps the main proponent of federal income tax was founder and Federalist, Alexander Hamilton. Hamilton wrote about taxation in Federalist No. 33 under the pseudonym Publius. There, Hamilton writes that the Necessary and Proper clause of the Constitution should provide grounds enough for the federal government to tax individuals.

The income tax has been challenged in US courts and has been found to be constitutional. Other taxes have been created since the 1800s including a tax for Social Security, Medicare and taxes businesses pay to employ personnel.

The Internal Revenue Service (IRS) processed about 150 million tax returns in 2008. More recently, the IRS has come down hard on tax evaders as they try to collect back taxes. Tax preparation is often difficult for people to understand and can lead to mistakes that could have a devastating effect on a person’s financial well-being. If you find yourself facing liens or penalties from the IRS, it’s a good idea to contact a professional experienced in (http://guardiantaxresolutions.com/index.php?option=com_content&view=article&id=45&Itemid=54) tax resolution who can help you resolve the situation. – 35634

If you are facing an IRS audit or have other tax issues, contact the experts at Guardian Tax Resolutions today by visiting (http://guardiantaxresolutions.com) Guardian Tax Resolutions.