Sunday marked the 100 year anniversary of the implementation of our U.S. Federal income tax. This tax was ushered in with the 16th amendment on February 3rd 1913 under President Woodrow Wilson. In honor of this historic centennial, we at Rosenhouse Group PC would like to share some interesting trivia about our nation's tax history.
Did You Know?
In 1913 the first Form 1040 was created. Congress placed a 1 percent tax on net individual income over $3,000, with an additional tax on those who had net income in excess of $20,000 of between 1 and 6 percent, depending upon income.
In the first year no taxes were collected; the IRS only checked the forms for accuracy.
During World War I the income tax rose to its highest point at 77 percent to help finance the war. Improvements to the system were made during World War II when Congress introduced payroll withholding and quarterly tax payments.
The deadline for filing individual tax returns wasn't always April 15. When the 16th Amendment was first enacted, the deadline was March 1. In 1918 that date was pushed back to March 15, then to April 15 in 1955.
In 2011 the IRS issued $318.5 billion in refunds to the $129.3 million returns filed requesting a refund.
Come See Us
Perhaps the one constant in tax history is that people have always disliked paying them. To get the most out of your return, schedule an appointment with your Dallas CPA at Rosenhouse Group PC today. We have the knowledge and experience to help alleviate your tax burdens and give you peace of mind.