Tax Collection

• The U.S. tax code provides the legal authority for the Internal Revenue Service and all the laws that apply to federal taxation and its collection. The same set of laws also provide for all the penalties involved for late payment, non-payment, tax evasion and tax fraud.
  
  

Social Change

• According to Kurt Usowski and Mike Hollar's article on social policy and the U.S. tax code on Entrepreneur.com, the tax code has frequently been used to push certain social behaviors with incentives. For instance, home ownership benefits and tax deductions were added to encourage personal home purchasing. Renters, on the other hand, get no such tax benefit. Another recent example includes tax credit for environmentally friendly car purchases or solar power system purchases.
  
  

Tax Distribution

• The U.S. tax code laws also provide for distribution of tax burden, by authorizing different tax levels for different income earners. This is seen in the form of tax tables but the law requiring it is in the tax code. Potential changes in related tax code sections can create billions of dollars in new tax revenue or tax cuts.