National Clean Up Your I.R.S. Act Month is observed in March every year, right before the stress of tax deadlines falls on the taxpayer’s head. The purpose of the month is to encourage taxpayers to finish filing taxes well before April even begins, thus dodging all kinds of last-minute stress. This month-long event, more than anything else, serves as a reminder that it’s always better to have all of your paperwork ready all year round, rather than scurrying at the last minute. So, instead of binge-watching Netflix, plan to be organized before April!
History of National Clean up Your IRS Act Month
The first known record of taxation is from Ancient Egypt between 3000 and 2800 B.C. The masses paid their taxes either in the form of tithes (which would often be agricultural produce) or corvee, forced, and unpaid labor. The sun has risen on empires and set on dynasties, but the one thing that has remained integral to empires, dictatorships, and democracies is taxation. Considering that taxes are nearly as old as human civilization itself, it’s safe to assume that a robust taxation system is imperative for a country to function.
The United States tax system works on both a federal and state level and is divided into several different kinds of taxes — income, capital gains, etc. The month of April is particularly significant for the U.S. tax system. The deadline to file a tax return from 2019 and claim a rebate, file a 2021 income tax return, pay any tax due, contribute to an Individual Retirement or Health Savings Account and have it considered to 2020 retroactively, and file the first quarterly estimated tax payment of 2020 is April 18, 2022.
The purpose of the National Clean Up Your I.R.S. Act Month is to motivate taxpayers to gear up for April deadlines in March. This month will, therefore, allow taxpayers to carefully sort through any documentation that they require, instead of rushing through the process in April.
National Clean up Your IRS Act Month timeline
The First Dynasty of the Old Kingdom of Egypt establishes the first known taxation system.
Americans rise in strong protest against this British policy on November 1, demanding that America not be taxed without representation in the Parliament.
On December 1, protesters throw an entire shipment of tea into Boston Harbor in protest of the British Tea Act, which allowed the British East India Company to sell tea in America without being taxed.
On July 4, the American Revolution results in the founding of the United States of America as a sovereign nation.
The 16th Amendment is ratified by Congress, which allowed the state to levy income tax on residents of the United States.
National Clean up Your IRS Act Month FAQs
What do you mean by tax?
Tax is a compulsory charge levied on a taxpayer by a governmental organization to fund governmental spending.
Why do I pay taxes?
The money you pay in taxes helps fund public resources, government workers, government-sponsored welfare programs, etc.
How do taxes work in the U.S?
The federal individual income tax has seven tax brackets ranging from 10% to 37%. These brackets are progressive; as your income increases, it is taxed at higher rates!
How to Observe National Clean up Your IRS Act Month
Keep track of all paperwork your may need to file taxes
Set aside a singular envelope that you can use to store all of your tax-specific paperwork. This will make your tax filing much simpler.
Make a list of all details you need to provide to your accountant
Donations, medical expenses, 1099s, and anything that your accountant may need to know. Make a list of all such details so you don’t forget to inform your accountant of anything.
Set a deadline for each task
The point of the National Clean Up Your I.R.S. Act Month is to get your tax filing done. That won’t happen unless you don’t stick to and set deadlines for yourself
5 Important Facts About Taxes
Russia had a beard tax
In 1698, Russian Czar Peter the Great announced a tax policy that included taxation on facial hair.
Lincoln first imposed federal income tax
Abraham Lincoln signed off on the 1861 Revenue Act, which imposed the first federal income tax in the U.S.
The tax deadline wasn’t originally in April
Initially, the deadline was supposed to be March 1.
The average American tax refund
In the U.S. the average American gets approximately $3,000 in tax returns.
Former I.R.S. commissioner was caught evading taxes
Joseph Nunan, I.R.S. Commissioner from 1944 to 1947, was incarcerated for evading over $90,000 in taxes in 1952.
Why National Clean up Your IRS Act Month is Important
It’s a reminder to get our work done in time
The National Clean Up Your I.R.S. Act Month rolls around way before the panic of tax filing sets in. A reminder without a panic setting is always welcome!
It creates a bit more structure to the tax filing process
A whole month dedicated to tax filing allows the taxpayer to organize the process a little more neatly. This structure might help get the job done way faster.
It holds us a little more accountable
We have fewer excuses to put things off until the last minute now that we have a whole month dedicated to tax filing. If you're taking part in National Clean Up Your I.R.S. Act Month, there's no reason to put off getting your paperwork in order until the last minute.
National Clean up Your IRS Act Month dates