IRC, also written I.R.C., is an acronym for the Internal Revenue Code.
[Last updated in July of 2023 by the Wex Definitions Team]
tax
irrevocable life insurance trust (ILIT)
Irrevocable life insurance trusts (ILIT) allow individuals to ensure the benefits from a life insurance policy can avoid estate taxes and follow the interests of insured. ILITs must be irrevocable, meaning the insured cannot change or undue...
IRS
IRS is an abbreviation for the Internal Revenue Service, the tax administrator and collector of the United States of America. The IRS is a bureau of the Department of the Treasury with the responsibility to collect federal taxes and enforce...
IRS regulations
IRS regulations, also known as treasury regulations or tax regulations, are the regulations issued by the Internal Revenue Services (IRS) to interpret the Internal Revenue Code (IRC).
Section 7805 of the IRC authorizes the...
itemized deductions
In the United States, as in most countries, the federal government taxes personal net income. The amount taxed is calculated by subtracting any tax deductions from one's adjusted gross income ("AGI"), then multiplying that amount by the applicable...
Jobs and Growth Tax Relief Reconciliation Act of 2003
The Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) was an omnibus bill passed under President George W. Bush to spur economic growth after the 2001 recession by reducing taxes. The bill had many provisions with the most...
Keogh plan
Keogh plans (also called qualified retirement plans, H.R. 10 plans, or self-employed retirement plans) are a type of ERISA retirement plan for self-employed individuals and employees of some private businesses. The plans allow tax-deferment...
levy
A levy may be a fine or tax imposed by a government authority. In this case, levy can also be used as a verb, as in “to levy taxes” which means to impose a tax.
A levy is also a legally ordered seizure and sale of property...
like-kind property
Like-kind property refers to property that fulfills the requirements of a 1031 exchange, delaying the recognition of capital gains. While investment properties normally incur capital gains taxes immediately after being sold, the Internal...
marital deduction
Marital deduction refers to exceptions to gift and estate taxes for transfers made to spouses. Almost all property qualifies for this deduction and there is no limit. The deduction does not avoid taxes completely, but rather, the spouse...