History of Internal Revenue Service in Timeline
The Internal Revenue Service (IRS) is the U.S. federal government's revenue service, responsible for collecting federal taxes and administering the Internal Revenue Code. As an agency of the Department of the Treasury, the IRS is headed by the commissioner of internal revenue, a presidential appointee. Its core functions involve assisting taxpayers, addressing tax filing errors and fraud, and managing benefit programs like the Affordable Care Act.
8 hours ago : IRS: Americans Must Claim COVID Tax Refunds by July 10th Deadline
Millions of Americans may be eligible for significant tax refunds related to COVID-19. The IRS has set a deadline of July 10th for claiming these refunds, urging eligible taxpayers to act promptly.
1906: Populist Movement for Tax Reform
In 1906, with the election of President Theodore Roosevelt, the United States saw a populist movement for tax reform.
1909: 16th Amendment proposed
In 1909, President Taft proposed the constitutional amendment to allow the federal government to collect income taxes.
1912: Populist Movement for Tax Reform
The populist movement for tax reform culminated during then-candidate Woodrow Wilson's election of 1912.
February 1913: Ratification of the Sixteenth Amendment
By February 1913, 36 states had ratified the Sixteenth Amendment, granting Congress the specific power to impose an income tax.
1913: Ratification of the 16th Amendment and Introduction of Form 1040
In 1913, the 16th Amendment was ratified, and the first edition of the 1040 form was introduced. Only those with annual incomes of at least $3,000 were instructed to file an income tax return.
1913: Sixteenth Amendment Ratified
In 1913, the Sixteenth Amendment to the U.S. Constitution was ratified, authorizing Congress to impose a tax on income. This led to the creation of the Bureau of Internal Revenue.
1917: Processing Returns
The IRS doubled its staff but was still processing 1917 returns in 1919.
1918: Bureau of Internal Revenue uses "Internal Revenue Service" name on tax form
As early as 1918, the Bureau of Internal Revenue began using the name "Internal Revenue Service" on at least one tax form.
1918: New Revenue Act
In 1918 a new Revenue Act established a top tax rate of 77%.
1919: IRS Enforcement of Prohibition Laws
In 1919 the IRS was tasked with enforcement of laws relating to prohibition of alcohol sales and manufacture.
1919: Processing Returns
The IRS doubled its staff but was still processing 1917 returns in 1919.
1930: Jurisdiction Transferred to Department of Justice
In 1930, the enforcement of laws relating to prohibition of alcohol sales and manufacture was transferred to the jurisdiction of the Department of Justice.
1933: IRS Resumes Collection of Taxes on Beverage Alcohol
After repeal in 1933, the IRS resumed collection of taxes on beverage alcohol.
1939: Increase in Tax Payers
The number of American citizens who paid income tax increased from about four million in 1939 to more than forty-two million by 1945.
1942: Passage of New Tax Act
In 1942, as the United States entered the Second World War, a new tax act was passed, including a special wartime surcharge.
1943: Guy Helvering's tenure as IRS commissioner ends
In 1943, Guy Helvering's tenure as IRS commissioner ended after serving for 10 years, making him the longest-serving commissioner since then.
1945: Increase in Tax Payers
The number of American citizens who paid income tax increased from about four million in 1939 to more than forty-two million by 1945.
1948: Use of Punch Card Equipment
In 1948, punch card equipment was used in the IRS to handle sixty million tax returns each year.
1952: Reorganization of the Bureau of Internal Revenue
In 1952, after incidents of tax evasion and bribery, the Bureau of Internal Revenue was reorganized under a plan put forward by President Truman, with the approval of Congress. The reorganization decentralized many functions to new district offices and civil service directors were appointed. Shortly after, the bureau was renamed the Internal Revenue Service.
1953: IRS Reorganization
In 1953, a reorganization established the IRS as its own agency within the Treasury Department. This change eliminated five political appointee positions that oversaw internal revenue, leaving only the commissioner as a political appointee.
1953: Agency Renamed Internal Revenue Service
In 1953, the agency was renamed the Internal Revenue Service. In subsequent decades, the IRS underwent numerous reforms and reorganizations, most significantly in the 1990s.
1953: Name change to "Internal Revenue Service" formalized
In 1953, the name change to the "Internal Revenue Service" was formalized in Treasury Decision 6038.
1954: Filing Deadline Moved
In 1954 the filing deadline was moved from March 15 to April 15.
1959: Authorization to Proceed with Computerization
The IRS was authorized to proceed with computerization in 1959 and purchased IBM 1401 and IBM 7070 systems for local and regional data processing centers.
1965: Use of Social Security Number
The Social Security number was used for taxpayer identification starting in 1965.
1967: Full Computer Processing
By 1967, all returns were processed by computer and punched card data entry was phased out.
1969: Nixon Directed IRS to Audit Political Opponents
In 1969, Richard Nixon directed the IRS to audit his political opponents, as well as opponents of US involvement in the Vietnam War.
1969: Creation of Alternative Minimum Tax
The Tax Reform Act of 1969 created the Alternative Minimum Tax.
1970: Nixon's Tax Returns
In 1970, Nixon, with a salary of $200,000, paid $792.81 in federal income tax.
1971: Nixon's Tax Returns
In 1971, Nixon, with a salary of $200,000, paid $878.03 in federal income tax.
1972: Creation of the Bureau of Alcohol, Tobacco, Firearms and Explosives
In 1972, the alcohol, tobacco and firearms activities of the bureau were segregated into the Bureau of Alcohol, Tobacco, Firearms and Explosives.
1978: Abandonment of the "Tax Administration System" Project
In 1978, the project to implement an interactive, realtime system, the "Tax Administration System", was abandoned after a report critical of the lack of protection of privacy in TAS.
1986: Limited Electronic Filing
By 1986, limited electronic filing of tax returns was possible.
1991: Decline in IRS Employees
In the three decades since 1991, the IRS had a substantial decrease in the number of employees per million residents, decreasing from 451 (in 1991) to 237 (in 2021).
1995: IRS Use of the Internet for Electronic Filing
In 1995, the IRS began to use the public Internet for electronic filing. Since the introduction of e-filing, self-paced online tax services have flourished, augmenting the work of tax accountants.
July 22, 1998: Taxpayer Bill of Rights III passed
On July 22, 1998, Congress passed the Taxpayer Bill of Rights III, which shifted the burden of proof from the taxpayer to the IRS in certain limited situations.
1998: Internal Revenue Service Restructuring and Reform Act enacted
In 1998, Congress enacted the Internal Revenue Service Restructuring and Reform Act, mandating that the agency replace its geographic regional divisions with units serving particular categories of taxpayers, in order to increase customer service and improve collections.
1998: Republican congressman introduces bill to repeal the Internal Revenue Code
In 1998, a Republican congressman introduced a bill to repeal the Internal Revenue Code by 2002.
1998: IRS Oversight Board and Office of the Taxpayer Advocate Established
In 1998, the IRS Oversight Board was established, the IRS Chief Counsel became the second Presidential political appointee, and the Office of the Taxpayer Advocate was created under a National Taxpayer Advocate appointed by the Secretary of the Treasury.
2002: Target date for repealing the Internal Revenue Code
2002 was the target date for repealing the Internal Revenue Code, as proposed by a Republican congressman in 1998.
2002: Increased Electronic Filing
By 2002, more than a third of all tax returns were filed electronically.
2002: IRS accuses Morans of conspiracy, filing false tax returns and mail fraud
In 2002, the IRS accused James and Pamela Moran, as well as several others, of conspiracy, filing false tax returns and mail fraud as part of the Anderson Ark investment scheme. The Morans were eventually acquitted.
2003: Consolidation Plan for Tax Return Processing Centers
As a result of increased electronic filing, the IRS implemented a consolidation plan for its paper tax return processing centers in 2003.
2003: Deal with Tax Software Vendors
In 2003, the IRS struck a deal with tax software vendors: The IRS would not develop online filing software and, in return, software vendors would provide free e-filing to most Americans.
2004: Law licenses of former IRS lawyers suspended
In 2004, the law licenses of two former IRS lawyers were suspended after a federal court ruled that they defrauded the courts so the IRS could win a sum in tax shelter cases.
October 4, 2005: Proposed Regulations for Section 409A on deferred compensation
On October 4, 2005, Proposed Regulations (citation 70 F.R. 57930–57984) for the Section 409A on deferred compensation (the so-called Enron rules on deferred compensation to add teeth to the old rules) were released because regulations have not been finalized.
September 2006: IRS outsources debt collection to private agencies
In September 2006, the IRS started outsourcing the collection of taxpayers debts to private debt collection agencies.
2006: Tax collected by IRS
During Fiscal Year (FY) 2006, the IRS collected more than $2.2 trillion in tax (net of refunds), about 44 percent of which was attributable to the individual income tax.
2007: IRS estimates tax gap
As of 2007, the agency estimates that the United States Treasury is owed $354 billion more than the amount the IRS collects, known as the tax gap.
2008: Estimated gross tax gap
For years 2008–2010, the estimated gross tax gap was $458 billion.
2008: IRS oversaw the Homebuyer Credit and First Time Homebuyer Credit programs
In 2008, the IRS oversaw the Homebuyer Credit and First Time Homebuyer Credit programs instituted by the federal government.
March 2009: IRS stops outsourcing debt collection
In March 2009, the IRS announced that it would no longer outsource the collection of taxpayers debts to private debt collection agencies.
September 2009: IRS removes ACORN from volunteer tax-assistance program
In September 2009, the IRS removed ACORN from its volunteer tax-assistance program after undercover exposé videos of questionable activities by staff of one of the IRS's volunteer tax-assistance organizations were made public.
October 2009: IRS ceases using private debt collection agencies
As of October 2009, the IRS has ceased using private debt collection agencies.
2009: U.S. Congress appropriated spending
For fiscal year 2009, the U.S. Congress appropriated spending of approximately $12.624 billion of "discretionary budget authority" to operate the Department of the Treasury, of which $11.522 billion was allocated to the IRS.
2009: Free Electronic Filing
In 2009, 70% of filers qualified for free electronic filing of federal returns.
October 1, 2010: Large Business & International division name change
On October 1, 2010, the Large and Mid-Size Business division was renamed to the Large Business & International (LB&I) division.
2010: Estimated gross tax gap
For years 2008–2010, the estimated gross tax gap was $458 billion.
2010: IRS oversaw the Homebuyer Credit and First Time Homebuyer Credit programs
In 2010, the IRS oversaw the Homebuyer Credit and First Time Homebuyer Credit programs instituted by the federal government.
2011: Closure of Processing Centers
Between 2003 and 2011, the IRS closed five of its ten processing centers.
2011: Average Time to Resolve Cases
Following the release of the findings, the IRS stated that it resolved most of the identity theft cases of 2013 within 120 days, while the average time to resolve cases from the 2011/2012 tax period was 312 days.
2011: IRS collected taxes
In 2011, 234 million tax returns were filed allowing the IRS to collect $2.4 trillion out of which $384 billion were attributed to mistake or fraud.
2011: Representative Rob Woodall begins introducing bill to eliminate income taxes
In 2011, Representative Rob Woodall of Georgia began introducing a bill every year to eliminate income taxes and abolish the IRS.
2011: Projected estimate of the budget for the IRS
The projected estimate of the budget for the IRS for fiscal year 2011 was $12.633 billion.
June 2012: IRS Oversight Board Recommendation
In June 2012, the IRS Oversight Board recommended to Treasury a fiscal year 2014 budget of $13.074 billion for the Internal Revenue Service.
2012: Fraudulent Tax Refunds
According to an inspector general's report, released in November 2013, identity theft in the United States is blamed for $4 billion worth of fraudulent 2012 tax refunds by the IRS.
November 2013: Inspector General's Report on Identity Theft
According to an inspector general's report, released in November 2013, identity theft in the United States is blamed for $4 billion worth of fraudulent 2012 tax refunds by the IRS.
2013: IRS political scandal
In 2013, the Internal Revenue Service was involved in a political scandal. It was discovered that the IRS subjected groups, both conservative and liberal, applying for tax-exempt status to additional scrutiny.
September 5, 2014: Senate Subcommittee releases report on IRS targeting
On September 5, 2014, a Senate Subcommittee released a report confirming that the Internal Revenue Service used inappropriate criteria to target Tea Party groups, but found no evidence of political bias. The report stated that the actions were "inappropriate, intrusive, and burdensome".
September 2014: Koskinen Expressed Concern Over Obamacare
In September 2014, IRS commissioner John Koskinen expressed concern over the organization's ability to handle Obamacare and administer premium tax credits that help people pay for health plans from the health law's insurance exchanges.
2014: IRS Oversight Board Recommendation
In June 2012, the IRS Oversight Board recommended to Treasury a fiscal year 2014 budget of $13.074 billion for the Internal Revenue Service.
January 2015: Koskinen Predicted Messy Tax Season
In January 2015, Fox News obtained an email which predicted a messy tax season on several fronts. The email was sent by IRS Commissioner Koskinen to workers. Koskinen predicted the IRS would shut down operations for two days later that year which would result in unpaid furloughs for employees and service cuts for taxpayers.
May 25, 2015: IRS announces data breach impacting taxpayers
On May 25, 2015, the IRS announced that criminals had accessed the private tax information of over 100,000 taxpayers, stealing approximately $50 million in fraudulent returns. The criminals exploited the IRS's online "Get Transcript" function.
August 17, 2015: IRS discloses additional taxpayer records compromised
On August 17, 2015, the IRS disclosed that the data breach announced earlier had compromised an additional 220,000 taxpayer records.
February 27, 2016: IRS reveals extent of data breach
On February 27, 2016, the IRS disclosed that more than 700,000 Social Security numbers and other sensitive information had been stolen in the previously reported data breach.
2016: Republican Study Committee calls for elimination of IRS
In 2016, the Republican Study Committee, comprised of over two-thirds of House Republicans, advocated for "the complete elimination of the IRS".
December 20, 2017: Passage of the Tax Cuts and Jobs Act
On December 20, 2017, Congress passed the Tax Cuts and Jobs Act of 2017.
December 22, 2017: Tax Cuts and Jobs Act Signed into Law
On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act of 2017 into law.
2018: Workforce Reduction
As of 2018, the IRS experienced a 15 percent reduction in its workforce, including a decline of more than 25 percent of its enforcement staff.
2019: IRS reorganizations implemented
In 2019, under both the Biden and second Trump administrations, the IRS underwent further reorganizations, which implemented the 2019 Taxpayer First Act and the IRS provisions of the Inflation Reduction Act, consolidating two deputy commissioners into one role, and other changes.
2019: Closure of Processing Center
The IRS closed two more centers – one in 2019 and another in 2021 – as e-file use continued to expand.
2020: Treasury Department Audit
A 2020 Treasury Department audit found the IRS had improved its identity verification system offerings for taxpayers, but was still behind in fully meeting digital identity requirements.
2021: Decline in IRS Employees
In the three decades since 1991, the IRS had a substantial decrease in the number of employees per million residents, decreasing from 451 (in 1991) to 237 (in 2021).
2021: Summary of collections before refunds by type of return
Summary of collections before refunds by type of return, fiscal year 2021
2021: Closure of Processing Center and Expansion of E-Filing
The IRS closed two more centers – one in 2019 and another in 2021 – as e-file use continued to expand. E-filed tax returns accounted for 90% of all returns submitted during the 2021 filing season.
2022: Representative Matt Gaetz introduces bill to disarm the IRS
In 2022, Representative Matt Gaetz of Florida introduced a bill to disarm the IRS after the agency's purchase of ammunition drew public attention.
2022: Taxpayers erroneously marked as deceased
In 2022, over 20,000 taxpayers were erroneously marked as deceased, preventing them from filing taxes or receiving refunds.
2022: Facial recognition requirement dropped
In 2022, the IRS dropped the requirement for facial recognition due to privacy concerns raised by government officials and the public. Alternative ID verification methods were then introduced to improve accessibility to IRS online tools.
2023: IRS announces first major reorganization in two decades
At the end of 2023, then-Commissioner Danny Werfel announced the first major reorganization of the IRS in two decades, consolidating the two deputy commissioner roles.
2023: Tax Return Processing and Revenue Collection
During the 2023 fiscal year, the IRS processed more than 271.4 million tax returns including more than 163.1 million individual income tax returns. For FY 2023, the IRS collected approximately $4.7 trillion, which is approximately 96 percent of the operational funding for the federal government.
May 2024: Senate Finance Committee investigates IRS control of Puerto Rico tax break
In May 2024, the Senate Finance Committee investigated whether the IRS failed to control a tax break offered by the Puerto Rico government, known as Act 22, intended to attract wealthy individuals to Puerto Rico.
December 4, 2024: President-elect Donald Trump announced his intention to nominate Billy Long to serve as Commissioner of the Internal Revenue Service
On December 4, 2024, President-elect Donald Trump announced his intention to nominate Billy Long to serve as Commissioner of the Internal Revenue Service.
2024: Study on IRS Audits
According to a 2024 study, "an additional $1 spent auditing taxpayers above the 90th income percentile yields more than $12 in revenue, while audits of below-median income taxpayers yield $5."
2024: Structure of the IRS Deputy Commissioners
Before 2024, there were two deputy commissioners who reported directly to the commissioner, one for operations support and one for services and enforcement.
February 13, 2025: Employees of the "Department of Government Efficiency" initiative entered the IRS
On February 13, 2025, employees of the "Department of Government Efficiency" initiative entered the IRS, whose parent agency is the Department of Treasury.
February 2025: Deputy Commissioner position vacant
As of February 2025, the position of deputy commissioner of internal revenue is vacant.
June 2025: Billy Long confirmed by the U.S. Senate as Commissioner of the Internal Revenue Service
In June 2025, Billy Long was confirmed by the U.S. Senate and took office as Commissioner of the Internal Revenue Service in July.
August 8, 2025: Scott Bessent appointed as acting commissioner
On August 8, 2025, Treasury Secretary Scott Bessent was appointed as acting commissioner after Billy Long was removed in preparation for an ambassadorship to Iceland.
October 6, 2025: Creation of Chief Executive Officer (CEO) role within the IRS
On October 6, 2025, the Department of the Treasury announced the creation of a new politically appointed leadership role within the IRS, titled "Chief Executive Officer" (CEO).
2025: Income Equivalent
In 1913, only those with annual incomes of at least $3,000 (equivalent to $97,700 in 2025) were instructed to file an income tax return.
2025: Project 2025 calls for elimination of civil-service protections for IRS employees
In 2025, Project 2025 called for the elimination of civil-service protections for IRS employees and making the top IRS officials Presidential appointees.
2025: Taxpayer Advocate reports to IRS CEO
In 2025, the Taxpayer Advocate began reporting to the IRS CEO.
2025: Replacement of commissioner and deputy commissioner by CEO political appointee
In the fall of 2025, the Senate-confirmed commissioner and the civil-servant deputy commissioner were effectively replaced by a non-confirmed "CEO" political appointee.
January 2026: IRS executives report to CEO
In January 2026, the newly appointed IRS CEO, Frank Bisignano, announced that 16 IRS executives would report to him directly, including the Taxpayer Advocate and the acting Chief Counsel.
January 2026: Deputy Commissioner position unofficially eliminated
In January 2026, the position of deputy commissioner was unofficially eliminated.
March 6, 2026: Scott Bessent's service as acting commissioner ends
On March 6, 2026, Scott Bessent's service as acting commissioner ended.
April 2026: Seven officials have served as acting commissioner since the beginning of the second presidency of Donald Trump
As of April 2026, seven officials have served as acting commissioner since the beginning of the second presidency of Donald Trump.
Mentioned in this timeline
Donald John Trump is an American politician media personality and...
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