when did the new tax bill take effect
Tax Cuts and Jobs Act of 2017 The individual and pass-through tax cuts fade over time and become net tax increases starting in 2027 while the corporate tax cuts are permanent. This enabled the Senate to pass the bill with only 51 votes, without the need to defeat a filibuster, under the budget reconciliation process.[8] The House passed the penultimate version of the bill on December 19, 2017, though for Senate procedural reasons small changes were needed and a revote was held in the House.[9] The Senate passed the final version on December 20 in a 51â€“48 vote and that final version was passed by the House of Representatives on that same day. The bill was signed into law by President Donald Trump on December 22, 2017. Most of the changes introduced by the bill went into effect on January 1, 2018 and will not affect 2017 taxes.[10]
Internal Revenue Service The IRS originated with the Commissioner of Internal Revenue, a federal office created in 1862 to assess the nation's first income tax, which was to raise funds for the American Civil War. The temporary measure provided over a fifth of the Union's war expenses and was allowed to expire a decade later. In 1913, the Sixteenth Amendment to the U.S. Constitution was ratified authorizing Congress to impose a tax on income, and the Bureau of Internal Revenue was established. In the 1950s, the agency was renamed the Internal Revenue Service and significantly reorganized. The Tax Reform Act of 1986 modernized the IRS and restructured it along a private sector model.