In 1862 the position of Commissioner of Internal Revenue was established and an income tax was sanctioned to pay for the expenses of the war. The new organization was called the Bureau of Internal Revenue. The income tax was repealed in 1872 and revived in 1894 before it was ruled by the Supreme Court to be unconstitutional in 1895. Eighteen years later the sixteenth amendment to the Constitution was ratified. This provided Congress with the authority to pass an income tax. Congress tried to keep the rates of the income tax relatively low, however, they often spiked them at the onset of national crises. Examples include World War I and the Great Depression. However, to raise money for World War II, Congress instead initiated payroll withholding and quarterly tax payments. During the purge of the patronage system from government that took place in the nineteen fifties, the agency was reorganized and professionalized. The name of the bureau was changed to the Internal Revenue Service. The IRS commissioner and chief council are now selected by the president and approved by the Senate. The IRS Restructuring and Reform Act of 1998 induced the most thorough restructuring and rejuvenation of the IRS since that time. It now resembles the private sector paradigm of structuring around clients with comparable needs so as to provide the most effective and efficient services
In 1862 the position of Commissioner of Internal Revenue was established and an income tax was sanctioned to pay for the expenses of the war. The new organization was called the Bureau of Internal Revenue. The income tax was repealed in 1872 and revived in 1894 before it was ruled by the Supreme Court to be unconstitutional in 1895. Eighteen years later the sixteenth amendment to the Constitution was ratified. This provided Congress with the authority to pass an income tax. Congress tried to keep the rates of the income tax relatively low, however, they often spiked them at the onset of national crises. Examples include World War I and the Great Depression. However, to raise money for World War II, Congress instead initiated payroll withholding and quarterly tax payments. During the purge of the patronage system from government that took place in the nineteen fifties, the agency was reorganized and professionalized. The name of the bureau was changed to the Internal Revenue Service. The IRS commissioner and chief council are now selected by the president and approved by the Senate. The IRS Restructuring and Reform Act of 1998 induced the most thorough restructuring and rejuvenation of the IRS since that time. It now resembles the private sector paradigm of structuring around clients with comparable needs so as to provide the most effective and efficient services