Created in 1862, the IRS has a scandalous history

The IRS—a division of the US Treasury Department that enforces the Internal Revenue Code, collects taxes, and enforces tax laws—has been a frequent victim of arson over the years.

See a timeline of the IRS's history, including the introduction of standard deductions and the digitization of the filing process

The Commissioner of Internal Revenue was created in 1862 to take over federal tax collection after the President enacted a temporary income tax. That agency eventually became today's Internal Revenue Service.

On July 1, 1862, the agency now known as the Internal Revenue Service was established and named the Bureau of Internal Revenue

It was created to collect the first-ever US income tax, which was created to help pay for the Civil War. After gaining their independence from Britain, Americans were skeptical about giving the federal government absolute power to collect federal income taxes. As a result, early US tax laws dictated that direct taxes, like income taxes, had to be directly apportioned to a state's population. The nation went back and forth on its federal tax laws multiple times. For instance, in 1872, the income tax from the Civil War was repealed. But it was revived in 1894, and then repealed again in 1895. In 1913, Congress passed the 16th Amendment, giving Congress the power to levy income taxes on individuals and corporations without apportioning the burden among the states in line with population, once and for all.

The IRS may look at your social media if you're being audited

While some people cheat on their taxes, others evade paying them altogether. This article details methods the Internal Revenue Service uses to catch these people in the act, such as scanning social media, computer data analysis, and whistleblowers.

How tax laws helped the federal government catch mob bosses during Prohibition

The IRS arrested top mob bosses during Prohibition after the Supreme Court ruled illegally-made income could be taxed. The IRS's biggest catch was Al Capone, who was charged with tax evasion and sentenced to 11 years in prison. But Capone wasn't the only bootlegger the IRS nabbed for tax evasion during this era.

In addition to collecting taxes, issuing tax refunds, and performing audits, the IRS is tasked with enforcing the laws listed in the Internal Revenue Code

The Internal Revenue Code is also known as Title 26 of the US Code. It was enacted in 1925 and outlines income, estate, sales, payroll, and excise tax laws.

Read more about how the IRS is organized

The Internal Revenue Service is led by a commissioner, who leads the IRS for a five-year term after being selected by the president of the United States. Under the commissioner, the IRS has multiple subdivisions that work on different tax groups, such as the Wage and Investment Division to handle individual wage earners.

Check out a list of 15 red flags that might result in an IRS audit

The Internal Revenue Service has audited less than 1% of all individual tax returns. If you're still worried about being audited, know that some people are more likely to be audited than others, such as people who make a lot of money and those who take large charitable deductions.

Half of Americans have an unfavorable opinion of the IRS, while 38% have a favorable view

From July 1 to July 7, 2024, Pew Research Center conducted a survey of 9,424 adults to gauge the public's attitudes about the federal government, including government agencies and departments. Of 13 agencies, 10 had net favorable ratings of 15 percentage points or more. Topping the list were the National Park Service (76% favorable), the US Postal Service (72%) and NASA (67%).

The IRS already has much of the data it asks Americans to report when filing their taxes

Americans spend more than 7.9 billion hours per year doing their taxes: It's notoriously time-consuming, requiring forms, deductions, and often third-party help. But here's the twist: The IRS already has much of the data it asks you to report. Americans still have to do the work themselves partly due to big tax prep companies that lobby to keep the status quo.

It cost the IRS $0.36 to collect $100 in 2024

It costs the IRS a significant amount of money to do part of its job—collecting money. For instance, the Internal Revenue Service spent $16.1B to collect $4.7T in taxes in 2023.

Read why the information Americans have about our tax system might be misleading

For many, filing taxes can be complicated and overwhelming. Some argue that the tax system obscures certain aspects of the US tax code, making it difficult for taxpayers to accurately assess potential reforms.

The US officially adopted an income tax in 1913

The US first levied income taxes during the Civil War, but modern income taxes became an American fixture in 1913. Two years earlier, Congress passed the 16th Amendment to give the government the right to tax individuals' and businesses' income. The US still technically levies the same federal income tax now as it did then—though it's evolved.

Over a century ago, fewer than 1% of Americans paid income taxes—but the cost of World War II prompted the federal government to greatly expand the number of people required to pay income taxes.

Watch former Securities and Exchange Commission Chair Gary Gensler's 'Eras Tour' for the agency's 90th anniversary, a look back on the pivotal moments in the agency's history.

Learn how the US tax code works and why it's important

First published in 1926, the US Code is the official codification of federal statutes in the US. Title 26 of the US Code, for instance, lists all of the federal tax laws of the United States. A new edition is published every six years.

Ridiculous documents released via the Freedom of Information Act

In addition to being a massive asset to journalists and eager members of the public, FOIA has also shed light on some of the weirder corners of America’s functioning democracy. Here are 10 choice documents.

The FBI's most famous cases

From the D.B. Cooper plane hijacking to the kidnapping of Frank Sinatra Jr. to the details about the first FBI agent killed in the line of duty, this FBI archive overviews the agency's most famous cases. Cases are organized by investigative priorities, according to the agency. Clicking any of the linked investigations takes readers to detailed articles about the cases, some of which remain unsolved.

Issues of ICE conduct span multiple Republican and Democratic administrations

Complaints of abuse and harsh treatment increased as detentions and deportations of undocumented immigrants reached record levels during former President Barack Obama's first term. Frontline investigated the causes of these claims in 2011 and found that these issues cross party lines.

The Beatles' song 'Taxman' was inspired by Britain's tax structure.

Major scandals have undermined the reputation of the Olympics

With billions in public money in play and the high stakes of winning gold for one's country, the Olympics have had their fair share of scandals. This Global Investigative Journalism Network list highlights eight groundbreaking investigations by journalists about the Olympics. It includes the 2014 Russian doping scandal, venue corruption in Rio, and the decadeslong cycle of sexual abuse by an Olympic doctor.

The Secret Service was originally formed to combat counterfeiting

By the 1860s, an estimated one-third of US currency in circulation was counterfeit. In 1865, the Secret Service was created specifically to combat the country's serious counterfeiting problem, which had led to widespread financial instability. This was partly due to the lack of federal currency standardization in the country at the time.

Individual income taxes are the federal government's primary revenue source, see a tracker that breaks down where the rest of the budget comes from

The US government historically makes nearly half of its total revenue last year from individual income taxes. But the US makes also makes money from a variety of other sources, including Medicare taxes and corporate income taxes. However, the federal government has run a deficit since 2001—reaching a peak of $3.13T in 2020.

A deep dive into Enron, one of the largest accounting scandals in history

Investing comes with great opportunities for reward, but it also carries great risk. Investors learned that the hard way when Enron collapsed. Everyone lost money—from the largest institutions on Wall Street to mom-and-pop investors who bought S&P 500 index funds. This series from American Scandal starts with a close-up into an investment manager at Enron who started to unravel the accounting scandal happening behind the scenes. Listen here.

Since 1913, Americans have paid income taxes at varying rates

In the 2020s, the top marginal tax rate has floated around 37%, relatively lower than previous eras. Some have called for boosting the rate significantly to tax the highest earners.

Explore scandals that got the "‑gate" treatment

Since the 1972 break-in at Washington's Watergate complex, the "-gate" suffix has become a global shorthand for scandal—ranging from major political crises to minor controversies—revealing how Watergate reshaped public discourse about misconduct and cover-ups.

33 images that became central to huge scandals

Americans spend an average of $200 on tax preparation services like TurboTax and H&R Block

In 2025, about half of Americans were able to file taxes directly with the IRS for free. It was the second year of the agency's new program, which cuts out intermediaries. Though tax preparation has been free for many Americans, critics say tax companies upsell customers.

Learn about loopholes in the American tax code, which involve everything from cat food to death to heavy machinery.

Read about a dating simulation game that helps prepare your income taxes

For the 2022 tax year, prank-playing creative studio MSCHF created a dating simulation game that helped taxpayers prepare their income taxes. In "Tax Heaven 3000," players interact with anime love interest Iris (it's like IRS), and run through a series of questions that complete their taxes. Iris also warns the player to stay away from tax-preparation companies like TurboTax.

About one dollar in every six that are owed to the federal government aren't paid each year

That adds up to close to $1T in what's known as the "tax gap." Read a breakdown on the main drivers of tax evasion (distinct from legal tax avoidance) in the US.

A timeline of sports-betting scandals

This timeline examines memorable moments from three decades of sports-betting history. It breaks down key political moments, as well as some historical moments such as when the internet pushed underground bookmaking online. There are also multiple descriptions of betting scandals from 1989 on.

Why the rich don't pay taxes like you do

The system behind the US income tax isn't as straightforward as it looks. You earn money. Taxes get taken out. Case closed … right? Not exactly. In this episode of "1440 Explores," we break down how the US tax system actually works, from confusing deductions and misunderstood tax brackets to why the wealthiest Americans often end up paying a very different tax than everyone else.

After Bernie Madoff's nearly $65B Ponzi scheme was exposed, the Securities and Exchange Commission was widely criticized for being inattentive and overly lax for not having caught the fraud earlier.

The Immigration and Customs Enforcement agency was created in the aftermath of the 9/11 terrorist attacks.

Read about what happened when one woman started filing income taxes again

Even though she was 35 and had a 14-year-old son, Gabriela Gallegos's mother had claimed her as a dependent on her tax forms for roughly a decade. After that particularly tumultuous ten-year span of Gallegos's life came to a close, she decided to file income taxes again.

Hamilton's tax on whiskey sparked the first armed rebellion against US federal authority

As Treasury secretary, Alexander Hamilton designed an excise tax on whiskey that provoked violent resistance in western Pennsylvania. The Whiskey Rebellion ended when George Washington mobilized state militias under federal authority to enforce the law.

How the NSA has changed through history

The National Security Agency was born in the Cold War and then transformed by 9/11. This article answers all the basic questions you might have about the NSA, from what it does to how much data it collects to some of its useful intercepts.

Alexander Hamilton consolidated the states' debts, implemented a tax system, and established a national bank.

Immigration and Customs Enforcement handles immigration enforcement within the interior of the US

ICE operates inside the United States, enforcing immigration laws through investigations, arrests, detention, and deportation of individuals residing in the country illegally. This page provides an overview of the agency's mission, structure, and internal enforcement operations.

The 16th Amendment paved the way for capital gains taxes

Ratified in 1913, the 16th Amendment paved the way for a far-reaching federal income tax and supercharged the country’s coffers. Before then, the US depended on import tariffs and so-called consumption taxes to raise revenue.

Americans between the ages of 45 and 55 pay nearly 30% of all income taxes, paying an average tax rate of around 17%.

The 2025 budget bill significantly increased ICE's budget and role in federal law enforcement

The 2025 'Big Beautiful Bill' allocated $170B to immigration and border enforcement for use through 2029. ICE's nearly $100B share includes substantial increases in detention capacity and operational scope. The increased funding will make ICE the most heavily funded federal law enforcement agency.

Death taxes have helped fund wars since the 1860s

Death taxes date back to 700 BCE and were used in Ancient Rome and Ancient Egypt. In the US, they've been used to finance wars since the Civil War, and have been levied on both the estate and beneficiary. The estate tax created during WWI to help finance war efforts is still in effect today.

Understanding the low corporate tax rate in the US

Corporate taxes, which make up roughly a third of the federal government's revenue, have been calculated using a flat 21% rate since the Tax Cuts & Jobs Act of 2017. The current rate is considered low both by historic standards (it averaged over 50% in the 1950s and 1960s) and compared to other countries.

A 1954 Senate subcommittee investigated the comics industry, believing it was corrupting young readers.

Read about why America is obsessed with the stories of financial scammers.

Capital gains taxes were first levied in the US in 1913

However, up until 1921, they were treated the same as ordinary income. Ever since then, rates have swung up and down.

The most controversial moments in ‘Saturday Night Live’ history

This list ranks the show’s biggest controversies over five decades, including Sinead O’Connor’s infamous shredding of the Pope, Elvis Costello’s abrupt set change, and Fear trashing Studio 8H.

Learn about the political history of the Department of Education

The Department of Education, created in 1980, has faced calls for elimination since day one. Though it contributes a small portion of K-12 funding, it plays a vital role in civil rights enforcement, federal grant distribution, and education research—making its existence and work symbolically controversial.