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Title 26 — Internal Revenue CodeRelease 119-73

§7523 Graphic presentation of major categories of Federal outlays and income

Title 26 › Subtitle Subtitle F— - Procedure and Administration › Chapter CHAPTER 77— - MISCELLANEOUS PROVISIONS › § 7523

Last updated Apr 6, 2026|Official source

Summary

The Secretary must put two pie charts in the instructions booklet for Forms 1040, 1040A, and 1040EZ. One chart must show the main types of federal spending and the other must show the main sources of federal income. The spending groups are: defense, veterans and foreign affairs; Social Security, Medicare and other retirement; physical, human and community development; social programs; law enforcement and general government; and interest on the debt. The income groups are: Social Security/Medicare/unemployment and other retirement taxes; personal income taxes; corporate income taxes; borrowing to cover the deficit; and excise, customs, estate, gift, and other taxes. The spending chart must have notes that show the percentage split for defense versus veterans versus foreign affairs; explain that “physical, human, and community development” includes things like agriculture, natural resources, environment, transportation, education, job training, economic development, space, energy, and general science; and give percentages for Medicaid, Supplemental Nutrition Assistance Program benefits, State programs funded under part A of title IV of the Social Security Act, and for public health, unemployment, assisted housing, and social services. Both charts must use data from the most recent fiscal year for which complete data are available when the instructions are prepared.

Full Legal Text

Title 26, §7523

Internal Revenue Code — Source: USLM XML via OLRC

(a)In the case of any booklet of instructions for Form 1040, 1040A, or 1040EZ prepared by the Secretary for filing individual income tax returns for taxable years beginning in any calendar year, the Secretary shall include in a prominent place—
(1)a pie-shaped graph showing the relative sizes of the major outlay categories, and
(2)a pie-shaped graph showing the relative sizes of the major income categories.
(b)For purposes of subsection (a)—
(1)The term “major outlay categories” means the following:
(A)Defense, veterans, and foreign affairs.
(B)Social security, medicare, and other retirement.
(C)Physical, human, and community development.
(D)Social programs.
(E)Law enforcement and general government.
(F)Interest on the debt.
(2)The term “major income categories” means the following:
(A)Social security, medicare, and unemployment and other retirement taxes.
(B)Personal income taxes.
(C)Corporate income taxes.
(D)Borrowing to cover the deficit.
(E)Excise, customs, estate, gift, and miscellaneous taxes.
(3)The pie-shaped graph showing the major outlay categories shall include the following footnotes:
(A)A footnote to the category referred to in paragraph (1)(A) showing the percentage of the total outlays which is for defense, the percentage of total outlays which is for veterans, and the percentage of total outlays which is for foreign affairs.
(B)A footnote to the category referred to in paragraph (1)(C) showing that such category consists of agriculture, natural resources, environment, transportation, education, job training, economic development, space, energy, and general science.
(C)A footnote to the category referred to in paragraph (1)(D) showing the percentage of the total outlays which is for medicaid, supplemental nutrition assistance program benefits, and assistance under a State program funded under part A of title IV of the Social Security Act and the percentage of total outlays which is for public health, unemployment, assisted housing, and social services.
(4)The graphs required under subsection (a) shall be based on data for the most recent fiscal year for which complete data is available as of the completion of the preparation of the instructions by the Secretary.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Social Security Act, referred to in subsec. (b)(3)(C), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Part A of title IV of the Act is classified generally to part A (§ 601 et seq.) of subchapter IV of chapter 7 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables. Codification Pub. L. 110–234 and Pub. L. 110–246 made identical

Amendments

to this section. The

Amendments

by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

Amendments

2008—Subsec. (b)(3)(C). Pub. L. 110–246, § 4002(b)(1)(E), (2)(O), substituted “supplemental nutrition assistance program benefits” for “food stamps”. 1996—Subsec. (b)(3)(C). Pub. L. 104–193, § 110(l)(4), formerly § 110(l)(8), as renumbered by Pub. L. 105–33, substituted “assistance under a State program funded under part A of title IV of the Social Security Act” for “aid to families with dependent children”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2008 AmendmentAmendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, except as otherwise provided, see section 4 of Pub. L. 110–246, set out as an

Effective Date

note under section 8701 of Title 7, Agriculture. Amendment by section 4002(b)(1)(E), (2)(O) of Pub. L. 110–246 effective Oct. 1, 2008, see section 4407 of Pub. L. 110–246, set out as a note under section 1161 of Title 2, The Congress.

Effective Date

of 1996 AmendmentAmendment by Pub. L. 104–193 effective July 1, 1997, with transition rules relating to State options to accelerate such date, rules relating to claims, actions, and proceedings commenced before such date, rules relating to closing out of accounts for terminated or substantially modified programs and continuance in office of Assistant Secretary for Family Support, and provisions relating to termination of entitlement under AFDC program, see section 116 of Pub. L. 104–193, as amended, set out as an

Effective Date

note under section 601 of Title 42, The Public Health and Welfare.

Effective Date

Pub. L. 101–508, title XI, § 11622(c), Nov. 5, 1990, 104 Stat. 1388–505, provided that: “The

Amendments

made by this section [enacting this section] shall apply to instructions prepared for taxable years beginning after 1990.”

Reference

Citations & Metadata

Citation

26 U.S.C. § 7523

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73