What is the primary purpose of the Internal Revenue Code (IRC)?

The primary purpose of the Internal Revenue Code (IRC) is to establish legal standards for federal income taxation in the United States. The IRC serves as the foundational legal framework for all aspects of federal tax law, defining how income is taxed, the rates applicable to different income levels, and the obligations of taxpayers. It encompasses provisions regarding deductions, credits, and the taxation of various entities, ensuring uniformity and clarity in the federal tax system.

This makes it essential for compliance and enforcement of tax laws at the national level, impacting individuals, businesses, and organizations. By centralizing tax regulations within a codified structure, the IRC provides the necessary guidelines for the Internal Revenue Service (IRS) to administer federal tax laws effectively and to ensure that taxpayers understand their rights and responsibilities under the law.