The agency responsible for tax collection in the United States
The Internal Revenue Service (IRS) is the agency responsible for tax collection in the United States. The IRS is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue.
The primary function of the IRS is to collect taxes from individuals and businesses. The IRS also administers the nation’s tax laws, and enforces tax laws passed by Congress.
The IRS has more than 80,000 employees, and has an annual budget of more than $12 billion. The agency is headquartered in Washington, D.C., and has offices in all 50 states.
The history of the IRS
The Internal Revenue Service (IRS) is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue. The IRS is responsible for collecting taxes and enforcing tax laws.
The history of the IRS goes back to the Civil War, when Congress created the Office of the Commissioner of Internal Revenue to help fund the war effort. In 1862, President Abraham Lincoln signed into law the nation’s first-ever tax on incomes, which was imposed on citizens with annual incomes over $600. The following year, Congress established the IRS as a permanent agency.
Over the years, Congress has granted the IRS increasingly more authority to administer and enforce the nation’s tax laws. Today, the agency is responsible for collecting taxes from more than 150 million individual taxpayers and businesses.
The structure of the IRS
The Internal Revenue Service (IRS) is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue. The IRS is responsible for collecting taxes and administering the Internal Revenue Code, the main body of federal statutory tax law of the United States. The duties of the IRS include providing tax assistance to taxpayers and pursuing and resolving instances of erroneous or fraudulent tax filings. The IRS has also overseen various benefits programs, and enforces portions of the Affordable Care Act.
The IRS originated with the Commissioner of Internal Revenue, a federal office created in 1862 by President Abraham Lincoln. The temporary measure provided over a sixth of the Union’s war expenses and was allowed to expire a decade later. In 1913, President Woodrow Wilson signed into law narrowly-defined landmark legislation officially creating the modern-day IRS.
The functions of the IRS
The Internal Revenue Service (IRS) is the revenue service of the United States federal government. The government agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue. The IRS is responsible for collecting taxes and administering the Internal Revenue Code, the main body of federal statutory tax law of the United States.
How to file your taxes
Filing your taxes doesn’t have to be difficult. The Internal Revenue Service (IRS) offers a variety of resources to help you understand the process and choose the best option for filing.
The first step is to determine if you need to file a federal tax return. If you had income from any sources during the year, you may need to file. You can use the IRS Taxpayer Assistance Center locator tool to find help in your area.
If you’re unsure whether you need to file, the IRS recommends that you use its online Interactive Tax Assistant tool. This tool can help you determine whether you’re required to file a return and, if so, can provide directions on how to do so.
Once you’ve determined that you need to file a return, you’ll need to gather all of your important tax documents. This includes your W-2 forms from each employer, 1099 forms for any other income sources, and records of any deductions or credits you plan to claim. You can find more information on what documents you’ll need in the IRS publications 553 and 554.
Once you have all of your documents together, it’s time to choose a filing method. The IRS offers three main options for filing your taxes: paper filing, e-filing, or using free tax software. Paper filing is the traditional method of mailing your completed tax return forms to the IRS. E-filing is when you submit your return electronically using approved software. And free tax software is a government-sponsored program that allows qualifying taxpayers to prepare and e-file their taxes for free. More information on each of these options can be found on the IRS website.
No matter which method you choose, make sure to file your return by April 15th. If you can’t meet this deadline, you can request an extension by filing Form 4868 with the IRS. Keep in mind that an extension only gives you additional time to file your return – it doesn’t extend the deadline for paying any taxes due.
Filing your taxes doesn’t have to be stressful or complicated – just take it one step at a time and make sure to follow all instructions carefully. With a little preparation and effort, anyone can successfully complete their tax return and comply with their responsibilities as a taxpayer
Tax deductions and credits
Deductions and credits both reduce your tax bill, but in different ways. A deduction lowers your taxable income, while a credit lowers your tax bill dollar for dollar. Most people deduct their expenses using the standard deduction or by itemizing their deductions on Schedule A (Form 1040). You can claim either the standard deduction or itemized deductions, but not both.
The standard deduction amounts for 2019 are:
- $12,200 for single taxpayers
- $24,400 for married taxpayers filing jointly
- $18,350 for heads of households
You may be able to take additional deductions as well, depending on your situation. For example, if you’re self-employed you can deduct business expenses; if you’re paying alimony, you can deduct that; and if you made charitable contributions, you can deduct those as well.
Tax fraud and penalties
The IRS takes tax fraud and penalties very seriously. If you are convicted of tax fraud, you could face hefty fines, jail time, and a permanent mark on your record.
Penalties for tax fraud can include:
- Fines of up to $250,000
- Jail time of up to 5 years
- A permanent mark on your criminal record
If you are convicted of tax fraud, the IRS will also require you to pay back any taxes that you owe, plus interest and penalties. In some cases, the IRS may also seize your property or assets.
If you are under investigation for tax fraud, it is important to seek legal counsel immediately. An experienced attorney can help you understand the charges against you and the best way to defend yourself.
The IRS and small businesses
The IRS offers many programs to help small businesses, including the Small Business/Self-Employed division which provides education and support for small business owners and self-employed individuals. The agency also provides the Small Business Health Care Tax Credit, which helps small businesses and tax-exempt organizations pay for health insurance for their employees.
The IRS and tax-exempt organizations
The Internal Revenue Service is responsible for enforcing the tax laws enacted by Congress and for administering the Internal Revenue Code. The IRS also assists taxpayers, prepares tax returns, and collects taxes.
The IRS is organized into four major divisions:
- Wage and Investment Division: This division handles individual tax return preparation and processing, Form 1040EZ/1040A processing, refund inquiries, and taxpayer assistance.
- Small Business/Self-Employed Division: This division handles small business and self-employed return preparation and processing, business inquiries, payroll tax deposits, excise tax returns, Form 990-EZ filing requirements, and taxpayer assistance.
- Large Business and International Division: This division handles large business return preparation and processing, international taxation, employment taxes, estate taxes,Form 1120 filing requirements, and corporate income taxes.
- Tax Exempt and Government Entities Division: This division handles tax-exempt organizations (Form 990), federal employee retirement plans (Form 5500), Indian tribal governments (Form 1040-T), state and local governments (FSLG),and Taxpayer Advocate Service issues.
The future of the IRS
The Internal Revenue Service (IRS) is the Federal agency responsible for tax collection and tax law enforcement. The IRS is a bureau of the Department of the Treasury, and is under the direction of the Commissioner of Internal Revenue.
The IRS is charged with enforcing the tax laws of the United States, and collecting taxes owing to the Federal Government. The IRS is also responsible for providing tax assistance to taxpayers, and for administering the Federal Government’s payroll system.
The IRS has come under criticism in recent years for its aggressive enforcement tactics, and for its alleged political bias. In response to these criticisms, the IRS has undertaken a number of reforms in recent years, including increasing transparency and accountability, and improving customer service.
Despite these reforms, it remains to be seen whether the IRS will be able to regain the trust of taxpayers. Only time will tell what the future holds for this beleaguered agency.