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. Inherent Risk

    The risk posed by an error or omission in a financial statement ...
  6. Deferred Tax Asset

    A deferred tax asset is an asset on a company's balance sheet ...
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

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center