Internal Revenue Service (IRS)

Definition

The Internal Revenue Service (IRS) is the revenue service of the United States federal government responsible for collecting taxes and enforcing tax laws. 

What is the Internal Revenue Service?

The primary function of the IRS is to collect taxes owed by individuals, businesses, and other entities under the authority of the Internal Revenue Code (IRC). The IRS is responsible for processing tax returns, assessing tax liabilities, and ensuring compliance with tax laws through audits, investigations, and enforcement actions.

In addition to tax collection and enforcement, the IRS provides taxpayer services and assistance to help individuals and businesses understand their tax obligations, file accurate tax returns, and resolve tax-related issues. 

The IRS is responsible for administering various tax laws, regulations, and policies established by Congress and the Department of the Treasury. This includes interpreting tax laws, issuing guidance and rulings, and implementing tax reforms and changes to the tax code. The IRS also works closely with other federal agencies, state tax authorities, and international tax agencies to coordinate tax administration and enforcement efforts.

To promote voluntary compliance with tax laws, the IRS conducts audits, examinations, and investigations to identify and address instances of non-compliance, fraud, and other violations. This may involve reviewing tax returns, conducting interviews, gathering evidence, and imposing penalties or sanctions on non-compliant taxpayers.