
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC7523]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                  CHAPTER 77--MISCELLANEOUS PROVISIONS
 
Sec. 7523. Graphic presentation of major categories of Federal 
        outlays and income
        

(a) General rule

    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) Definitions and special rules

    For purposes of subsection (a)--

                     (1) Major outlay categories

        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) Major income categories

        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) Required footnotes

        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, food stamps, 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) Data on which graphs are based

        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.

(Added Pub. L. 101-508, title XI, Sec. 11622(a), Nov. 5, 1990, 104 Stat. 
1388-504; amended Pub. L. 104-193, title I, Sec. 110(l)(4), formerly 
Sec. 110(l)(8), Aug. 22, 1996, 110 Stat. 2173, renumbered Pub. L. 105-
33, title V, Sec. 5514(a)(2), Aug. 5, 1997, 111 Stat. 620.)

                       References in Text

    The Social Security Act, referred to in subsec. (b)(3)(C), is act 
Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Part A of title IV of 
the Act is classified generally to part A (Sec. 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.


                               Amendments

    1996--Subsec. (b)(3)(C). Pub. L. 104-193, Sec. 110(l)(4), formerly 
Sec. 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''.


                    Effective Date of 1996 Amendment

    Amendment 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

    Section 11622(c) of Pub. L. 101-508 provided that: ``The amendments 
made by this section [enacting this section] shall apply to instructions 
prepared for taxable years beginning after 1990.''
