§7523 Graphic Presentation of Major Categories of Federal Outlays and Income

Summary

When the IRS makes the instruction booklets for Forms 1040, 1040A, or 1040EZ for a tax year, it must put two prominent pie charts in the booklet: one showing the main types of federal spending and one showing the main types of federal income. The spending chart covers six big groups: defense/veterans/foreign affairs; Social Security, Medicare, and other retirement; physical, human, and community development (like agriculture, natural resources, environment, transportation, education, job training, economic development, space, energy, and general science); social programs; law enforcement and general government; and interest on the debt. The income chart covers five groups: payroll taxes for Social Security/Medicare/unemployment and other retirement, personal income taxes, corporate income taxes, borrowing to cover the deficit, and excise/customs/estate/gift/miscellaneous taxes. The spending pie must include footnotes that break out defense vs. veterans vs. foreign affairs, list what is in the development group, and give percentages for Medicaid, SNAP, the State program under part A of title IV, and for public health, unemployment, assisted housing, and social services. Both charts must use the most recent fiscal year with complete data when the instructions are prepared.