What is Income Tax?

The taxation of income was first authorized by the 16th amendment to the United States Constitution where Congress was granted the power to levy a tax on incomes from whatever source the income was derived. This is a wide open door and it has stayed open ever since. Title 26 of the United States Code contains the Internal Revenue Code. Virtually all of the individual states have enacted their own tax law on incomes earned within their jurisdiction. Nevada is a notable exception. Failure to file a tax return can expose a person to criminal prosecution. A willful failure to file can lead to jail time and a heavy financial penalty. Many taxpayers have turned to income tax preparation software for assistance with filing returns. Tax law is a fertile area for attorneys and one that rewards creativity