Everything You Need to Know About the Internal Revenue Service

The Internal Revenue Service, also known as the IRS, is a federal agency that is responsible for collecting taxes and administering the tax laws of the United States. The IRS is a division of the Treasury Department, and it is headquartered in Washington, D.C. 

The primary mission of the IRS is to collect the revenue needed to fund the federal government, and it does this through enforcement of the tax laws and administration of the tax code. The IRS also administers certain parts of the Affordable Care Act. 

The IRS employs over 80,000 people, and it has an annual budget of over $12 billion. The agency is divided into four divisions: Wage and Investment Division, Small Business/Self-Employed Division, Large Business, and International Division, and Tax Exempt and Government Entities Division. 

Who Does the IRS Serve?

The IRS serves all taxpayers in the United States, both individuals and businesses. The agency also serves tax-exempt organizations, such as charities, as well as state and local governments. 

The IRS provides guidance to taxpayers on their rights and responsibilities under the tax laws, and it assists them in meeting their tax obligations. The agency also works to ensure that taxpayers comply with the tax laws by conducting audits and enforcing penalties for those who do not comply. The IRS also programs such as the fresh start initiative & tax forgiveness.

What Are Some of the More Well-Known Functions of the IRS? 

Some of the more well-known functions of the IRS include issuing refunds to taxpayers, processing tax returns, and enforcing penalties for those who do not pay their taxes. 

The IRS issues refunds to taxpayers who have overpaid their taxes or who are entitled to certain credits or deductions. The agency processes tax returns filed by individuals, businesses, and other entities subject to taxation. And finally, the IRS enforces penalties for those who do not comply with the tax laws, such as failing to file a return or pay taxes owed. 
                                                         

The Internal Revenue Service is a federal agency that is responsible for collecting taxes and administering the tax laws of the United States. The agency employs over 80,000 people and has an annual budget of over $12 billion. It serves all taxpayers in the United States by providing guidance on their rights and responsibilities under the law and assisting them in meeting their obligations.