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Understanding U.S. Tax Law

Tax is levied in the United States under the Internal Revenue Code (IRC) and is published in various volumes of the United States Statues and separately as Title 26 of the United States Code (USC).Title 26 is organised into subtitles and sections covering income tax, payroll taxes, estate taxes, gift taxes and excise taxes, as well as procedures and administration.It implementing agency is the Internal Revenue Service – the equivalent of the Australian Taxation Office in Australia, HRMC in the UK and the State of Administration (SAT) in China.

The US residency rules for tax purposes are found in I.R.C. § 7701 (b).It should also be noted that when you see the symbol ‘§’ in relation to US laws, it means section.In this case, I.R.C. § 7701 (b) means ‘section 7701 (b) of the Internal Revenue Code’.If you want to read the code for yourself, then go to this link.