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 77— MISCELLANEOUS PROVISIONS › § 7523
Summary
The instruction booklet for the individual income tax return must prominently display two pie charts. One shows where federal money goes, split into major categories: 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 other shows where the money comes from: payroll taxes, personal income taxes, corporate income taxes, borrowing to cover the deficit, and excise, customs, estate, gift, and other taxes. Footnotes break down certain categories in more detail, and the charts must use the most recent fiscal year with complete data.
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