Revenue Act Of 1862

AAA

DEFINITION of 'Revenue Act Of 1862'

This act increased taxes and implemented the first federal income tax in the United States. The Revenue Act of 1862 was passed by Congress in order to fund the American Civil War, and in the process also created the Bureau of Internal Revenue that managed tax collection duties. The income tax was the best source of income during that period, increasing government coffers by an estimated $340 million during the 10 year period it existed.

INVESTOPEDIA EXPLAINS 'Revenue Act Of 1862'

The Bureau of Internal Revenue is known today as the Internal Revenue Service (IRS). The name was changed to emphasize a greater focus on serving the public rather than merely collecting taxes. Today the IRS is a massive bureau, in 2004 the agency collected over $2 trillion in revenue processing more that 224 million tax returns.

RELATED TERMS
  1. Audit

    1. An unbiased examination and evaluation of the financial statements ...
  2. Certified Public Accountant - CPA

    A designation given by the American Institute of Certified Public ...
  3. Generally Accepted Accounting Principles ...

    The common set of accounting principles, standards and procedures ...
  4. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  5. Section 7702

    The section of the United States Internal Revenue Code that defines ...
  6. Book Value Reduction

    Reducing the value at which an asset is carried on the books ...
Related Articles
  1. Tax Tips For The Individual Investor
    Retirement

    Tax Tips For The Individual Investor

  2. Don't Put Off Your Year-End Tax Plan
    Taxes

    Don't Put Off Your Year-End Tax Plan

  3. 10 Money-Saving Year-End Tax Tips
    Taxes

    10 Money-Saving Year-End Tax Tips

  4. Avoiding IRS Penalties On Your IRA Assets
    Taxes

    Avoiding IRS Penalties On Your IRA Assets

Hot Definitions
  1. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  2. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  3. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center