Code of Federal Regulations Title 26 - Internal Revenue
Title 26 of the Code of Federal Regulations (CFR) – Internal Revenue contains the detailed rules and procedures used to implement and enforce the U.S. Internal Revenue Code (IRC), which governs federal tax law. These regulations are issued primarily by the Internal Revenue Service (IRS) and the Department of the Treasury.
🔹 Purpose of Title 26 CFR:
It provides interpretive guidance, procedural rules, and compliance standards for the collection of federal taxes, including income, excise, estate, gift, and employment taxes.
🔑 Major Subtitles/Parts in Title 26 CFR:
While the CFR is organized differently than the IRC, it reflects and interprets various sections of the IRC. Key areas include:
1. Income Taxes (Subchapter A)
Covers individual and corporate income tax.
Explains deductions, exemptions, credits, and taxable income.
Examples:
§1.1 – Tax imposed on individuals
§1.162 – Business expense deductions
§1.170 – Charitable contributions
2. Employment Taxes (Subchapter C)
Includes Social Security and Medicare taxes (FICA), federal unemployment taxes (FUTA), and income tax withholding.
Example:
§31.3401 – Wages and tax withholding definitions
3. Estate and Gift Taxes (Subchapter B)
Rules for the taxation of transfers of wealth during life or at death.
Example:
§20.2031 – Valuation of estate property
4. Excise Taxes (Subchapter D)
Taxes on specific goods, services, or activities (e.g., fuel, tobacco, alcohol, firearms).
Example:
§48.4041 – Diesel fuel taxes
5. Procedure and Administration
Covers filing, penalties, assessments, audits, and appeals.
Example:
§301.6201 – Assessment authority
§301.6651 – Failure to file or pay penalties
6. Tax-Exempt Organizations
Defines the criteria and compliance rules for nonprofit status under §501(c).
Example:
§1.501(c)(3) – Charitable organization requirements
🛠️ Enforcement & Interpretation:
IRS Revenue Rulings, Procedures, and Notices further clarify these regulations.
Courts may refer to CFR when interpreting the IRC in tax litigation.
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