IRS

The Internal Revenue Service (IRS) is the United States government agency within the Department of the Treasury responsible for collecting federal taxes and administering the Internal Revenue Code. Its duties include processing tax returns, issuing refunds, and providing taxpayer services and guidance to ensure compliance with tax laws.

Historically, the IRS traces its roots to the Bureau of Internal Revenue, established in the 19th century. It was reorganized and renamed the Internal Revenue Service in 1953 to reflect a broader mission of tax administration. The agency is directed by a Commissioner and operates under the supervision of the Treasury.

Key functions include administering and enforcing federal tax laws, collecting revenue, and issuing notices or penalties when appropriate. The IRS also administers tax credits and incentives, such as credits for dependents and education, and supports voluntary compliance through education and outreach. Enforcement activities encompass audits, examinations, criminal investigations, and collection actions such as liens and levies when required.

Organizationally, the IRS is divided into operating divisions that focus on different taxpayer segments: Small Business/Self-Employed, Large Business and International, Wage and Investment, and Tax-Exempt and Government Entities. Supporting offices include the Chief Counsel, the Taxpayer Advocate Service (an independent office that assists taxpayers), and information technology and security units.

In addition to handling filings, the IRS provides online tools and services, including electronic filing (e-file), online accounts, and taxpayer assistance centers, while balancing privacy, security, and due process in its administration of tax laws.