What is The Internal Revenue Service IRS

The Internal Revenue Service (IRS) is the U.S. government agency responsible for collecting taxes, administering the Internal Revenue Code, developing regulations, and overseeing compliance with tax laws. It was established in 1862 to evaluate and enforce the country’s federal tax laws. The IRS is managed by the Department of the Treasury and is the largest revenue-collecting agency in the United States. In this article, we will discuss the basics of the IRS and its purpose.

Overview of the IRS

The Internal Revenue Service (IRS) is the nation’s federal tax administrator; it collects taxes mandated by the U.S. government and its agencies. The IRS processes individual, business and corporate taxes — including income, payroll, estate and gift taxes — and also oversees a variety of other related activities such as international enforcement, retirement plan compliance, public debt collection and tax problem resolution.

The mission of the IRS is to provide America’s taxpayers with top-notch service by helping them understand their tax obligations and make payments properly. The agency seeks to ensure fairness in its collection practices while enforcing federal tax laws with integrity and respect for individuals’ rights. To accomplish this goal, it provides numerous services which make it easier for citizens to file their annual personal income taxes or meet their business obligations with regard to taxation statutes.

In addition to providing taxpayer assistance, the IRS maintains a wide range of research materials related to individual, business and corporate taxation laws. It also administers numerous programs designed to help students learn more about taxes in general or address specific issues related to personal financial management or small business tax compliance. These resources are available online on the IRS website as well as in a variety of publications provided by local offices throughout the United States.

Role of the IRS

The Internal Revenue Service, or IRS, is the largest tax collection agency in the United States. Its primary role is to ensure that all citizens are compliant with federal tax laws and regulations. The IRS enforces these regulations through audits and investigations, while also administering tax collection efforts, including the collection of delinquent taxes.

The agency is responsible for filing and collecting taxes on both individuals and businesses in accordance with the Internal Revenue Code (IRC), which contains all pertinent federal tax laws and regulations. It also helps taxpayers understand their legal obligations under these laws by providing educational materials, such as Taxpayer’s Guide to Taxation on its website.

The IRS further plays an important role in assisting other government entities by providing research data to other departments and organizations involved in policy-making activities related to taxation. The agency also issues multiple types of refunds to taxpayers who have overpaid their taxes; as well as offers penalty relief for those who cannot satisfy their filing requirements for practical reasons or qualify for certain exceptions.

Tax Collection

The Internal Revenue Service (IRS) is responsible for collecting taxes from individuals and businesses in the United States. The IRS collects taxes from various federal, state and local taxes, as well as a variety of other fees. It is important to note that the IRS not only collects taxes on income but also on many other types of transactions. The IRS also plays an important role in setting tax rates and administering tax laws.

Taxpayer Obligations

Taxpayers have a number of legal obligations when it comes to paying their taxes. As a taxpayer, you are responsible for providing the Internal Revenue Service (IRS) with accurate and timely information about your income, deductions, and other financial details. Failure to submit or pay your tax returns on time may result in penalties and/or interest charges. Additionally, not filing taxes can lead to criminal charges.

In general, taxpayers must:
-File a return by April 15th each year or the next business day if that date falls on a weekend or holiday
-Pay their taxes on the dates indicated on the IRS notice they receive
-Keep records of all financial activity related to taxes that span at least three years
-Report any changes in tax status such as marriage or dependent changes
-Provide necessary documents such as W-2 forms and 1099 forms when filing mailing or e-filing for taxes

It is important for taxpayers to understand their rights under existing IRS legislation as well as know what taxpayer obligations they have which include: paying estimated taxes quarterly; keeping current with required payments; being knowledgeable about allowable deductions; knowing when extension requests will be accepted my the IRS; making sure withholding is adequate; filing partnership tax forms for self employed persons; understanding flexible spending accounts taxation regulations and more. By meeting these obligations, taxpayers can avoid costly penalties.

Taxpayer Rights

Taxpayers have certain rights when working with the Internal Revenue Service (IRS), such as the right to privacy, the right to be informed, and the right to a fair and just tax system. The IRS is required to abide by these rights during their collection of taxes from taxpayers.

The Right to Privacy: The Taxpayer Bill of Rights protects your private tax information from being viewed or used inappropriately by anyone other than yourself. Taxpayers are entitled to know why the IRS needs their information, how it will be used, and what will happen if they don’t provide this information.

The Right to be Informed: Taxpayers have a right to know what their rights are when dealing with the IRS as well as how procedures work. Before taking any action on a levy placed against somebody for unpaid taxes, for example, taxpayers must receive proper notice from the IRS explaining what will happen if they don’t pay up. This includes clear instructions on how taxpayers can resolve any discrepancies in their accounts or submit an appeal if needed.

The Right to Fair and Just Treatment: Fair and equal treatment under federal law covers all aspects of dealing with taxes – from examinations, collections, refunds and proposals for tax liability adjustments – all of which must be conducted in a non-discriminatory manner that meets established legal requirements. Every taxpayer has protection against improper treatment including protection against unreasonable administrative decisions made by an irresponsible employee.

Types of Taxes Collected

The Internal Revenue Service (IRS) is the agency responsible for administering the U.S. federal government’s tax system. While the specific types of taxes the IRS collects vary from year to year, some of them remain consistent and will always be collected by the agency. These include:

-Income taxes: Income taxes are typically among the most important and most frequent taxes that are collected by the IRS each year. This includes income earned in wages, salaries, tips, and investments such as capital gains or interest income.

-Self-employment taxes: Self-employed individuals must also pay self-employment tax on any earnings that exceed $400 per year, in addition to income tax on other earnings. This tax is used to fund social security and medicare as part of Social Security Contributions and Employer Tax contributions known as SECA/FICA (Social Security Insurance/Federal Insurance Contributions Act).

-Employment taxes: Employees who work for an employer must also pay employment taxes such as Social Security payroll deductions and Medicare payroll deductions, commonly referred to as FICA Taxes (Federal Insurance Contributions Act). Employers are required to withhold these amounts from employee paychecks each month, then deposit them with the IRS at least quarterly via Form 941, Employment Tax Return.

-Excise Tax: This type of consumption tax is imposed on certain goods or services such as gasoline and alcohol. It also applies to certain activities such as travel within certain jurisdictions, participating in sports programs or gambling activities like bingo games or lotteries. The excise tax rate is determined according to each category; for instance gasoline can have a different rate than liquor sales depending on where it is sold and what jurisdiction it falls into.

-Gift Tax: Gifts made between individuals may be subject to a gift tax if they exceed $15,000 in cash or property value per calendar year per recipient ($30,000 for married couples filing jointly). This amount applies separately for gifts made by both spouses to different recipients in any given calendar year; thus a married couple could give up to $60K total without triggering a gift tax liability for either spouse filing singly or jointly with their spouses filing status that same calendar year.

The Internal Revenue Service (IRS) provides a variety of taxpayer services to individuals and businesses across the United States. These services include filing taxes, checking filing status, accessing tax records, getting help with taxes, and more. In this article, we’ll discuss the different taxpayer services offered by the IRS.

Tax Preparation Assistance

Taxpayers may find that preparing their taxes is complex and time-consuming, so the Internal Revenue Service (IRS) offers free help through its Taxpayer Assistance Centers located throughout the United States. These centers provide personal assistance from IRS specialists who can provide in-depth information on income tax laws and form instructions. They can also explain deductions, credits and other aspects of tax filing.

Taxpayers can also explore helpful online resources available on the IRS website. These are designed to assist taxpayers with understanding the forms and instructions, filing electronically, making payments or correcting returns. Additional assistance is available through the Volunteer Income Tax Assistance (VITA)and Tax Counseling for the Elderly (TCE) programs which offer free income tax help to qualified individuals. While walk-ins are welcome at most locations, it’s best to call ahead to make sure a location has availability or you may end up having to wait in line to be helped.

Electronic Filing

Electronic filing is an efficient and secure way of filing taxes. Instead of mailing in paper tax returns, taxpayers can use e-filing services to electronically submit their taxes to the Internal Revenue Service (IRS) or directly to a professional tax preparer. E-filing can be done by individuals, businesses or preparers. Most taxpayers are eligible to file their taxes electronically and there are many benefits associated with doing so.

With electronic filing, taxpayers can rest assured that their return will be submitted quickly and securely to the appropriate government agency or center. Using third-party e-filing software can simplify the process; users don’t have to worry about finding official forms or dealing with complicated calculations — all of these tasks will be handled for them. Furthermore, taxpayers often receive an estimate of their refund within minutes after submitting their return, allowing them greater peace of mind in knowing exactly how much money they will be receiving back from the IRS.

Electronic filing also offers more flexibility when it comes to payment options than paper filing does. Taxpayers who e-file have the option of paying their entire balance via credit card or online payment systems such as PayPal, direct debit from a bank account, or in some cases partial payments over time using several methods of payment. This greatly simplifies the payments process for both individuals and businesses who need additional time to pay off balances due on April 15th each year!

Payment Plans

If you owe taxes and are unable to pay your full balance due, you may apply for a payment plan with the IRS. Many taxpayers are eligible to set up an installment agreement which allows for taxes to be paid in smaller amounts over time.

Payment plans have tax, penalty, and interest charges that apply until the balance is fully paid. The amount of each payment should be based on your ability to pay and still meet basic living expenses such as housing costs. Generally, if the balance can be paid off in 120 days or less, you can set up a Short Term Payment Plan at no additional cost. Long-Term Payment Plans are available for balances greater than 120 days and require a fee of $31 – $149 per agreement depending on how you choose to make payments (online, mail or payroll deduction).

To determine if you qualify for an installment plan or payment agreement contact the IRS by phone or online. Financial hardship cases often qualify for partial pay agreements that allow a portion of unpaid taxes to be forgiven based on individual circumstances. The IRS also offers special payment plans tailored specifically to small business owners that have federal tax liabilities.


The Internal Revenue Service (IRS) is the nation’s tax collection agency and the enforcement arm of the US Department of the Treasury. The IRS seeks to enforce the law and collect taxes in an impartial and fair manner. This includes ensuring that all taxpayers comply with their tax filing and payment obligations. This section will discuss the enforcement measures that the IRS takes against those who fail to adhere to the nation’s tax laws.


Audits are an important part of the enforcement activities of the IRS. Generally, an audit involves reviewing a taxpayer’s tax return and/or financial records to verify that all information has been accurately reported. Auditors can review any tax return, including individual, corporate, trust or estate returns.

The purpose of an audit is to examine previous returns and determine if any changes are needed. Audit results may include extra taxes and/or interest, which the taxpayer must pay, as well as potential penalties for not reporting all income or for other violations. Depending on their areas of expertise and workloads, auditors may select specific returns for examination from a population of returns filed in one year or from taxpayers with similar types of businesses.

IRS Collection Automation Program (CAP) helps taxpayers by providing secure access to their accounts at taxpayerservices-irs[dot]gov where they can view notices of taxes due. The site also provides streamlined payment options with automatic payment guarantees and real-time payment tracking. IRS Collection Centers collect payments through cashier’s checks and money orders as well as credit cards either online or by telephone; however a fee is charged for credit card payments (see IRS Publication 594).

Collection Actions

The Internal Revenue Service, or IRS, is responsible for the enforcement and collection of tax debts. The IRS uses a variety of collection actions to encourage taxpayers to pay their outstanding tax debt. If the delinquent taxpayer fails to make arrangements with the IRS to pay their debt, then they may face further collection action.

A taxpayer may be subject to Collection Due Process (CDP) if they petitioned against an IRS collection action within the appropriate filing deadline. When a Prior Collection Due Process (PCDP) request has been granted by the Tax Court, then no further CDP review will be allowed on that tax period unless allowed by law.

Other collection actions which may be taken by the IRS include:
-Automated Substitute For Return/Notice of Deficiency Assessment (ASFR/90 Day Letter): The ASFR/90 Day Letter is a substitute return assessment used when necessary information is not supplied or errors occur in computation of a taxpayer’s return.
-Tax Lien: A tax lien secures payment for a taxpayer’s unpaid federal taxes owed to the government. A Notice of Federal Tax Lien file is issued in public records when unpaid taxes remain after several demands from the IRS.
-Levy: A levy is essentially a legal seizure of property that can be used as payment for an individual’s tax liability balance due with the Internal Revenue Service (IRS). The most common type of levy involves the garnishment or withholding of wages or bank accounts.
-Installment Agreement: A payment plan agreement typically requires monthly payments over time to settle back taxes owed to IRS; also referred to as an ‘IRS installment agreement’ or ‘payment agreement.’

Taxpayer Advocacy Services

The Taxpayer Advocacy Services (TAS) is an independent organization within the Internal Revenue Service (IRS) dedicated to serving taxpayers and ensuring that their rights are fully protected at every step of the enforcement process. TAS provides free mediation services to taxpayers who have a dispute with the IRS and cannot resolve it through normal channels. TAS strives to listen carefully, answer questions, and help taxpayers understand their rights and responsibilities when dealing with the IRS.

TAS advocates work on behalf of taxpayers to provide them with assistance throughout the collection process. This includes assisting taxpayers in filing appeals, resolving taxpayer grievances about agency decisions, protecting against excessive enforcement actions, working on negotiated settlements or payment plans, or helping address taxpayer problems that were caused by an IRS error or misinterpretation of applicable law. TAS also provides education and guidance regarding tax compliance obligations and resource information relating to enforcing those obligations. They uphold taxpayer rights at every stage of the enforcement process by advocating for speedy problem resolution, identifying systemic issues that may be impacting tax administration, conducting outreach programs for taxpayers in need of help with taxes, providing guidance on legal issues related to enforcing taxpayer’s rights under applicable laws, providing technical expertise in areas such as lien notices and levy releases and representing taxpayers before appeals boards.

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The Internal Revenue Service (IRS) is the government agency responsible for collecting taxes and paying out tax refunds. They offer a wide range of resources and services to help individuals and businesses with their tax-related matters. These resources range from tax forms and publications to assistance programs and educational materials. In this section, we will review the different resources available from the IRS.

IRS Website

The Internal Revenue Service (IRS) website is the official source of federal tax information. Here you can find answers to questions about filing and paying taxes, applying for an Employer Identification Number (EIN), correcting errors on your return, practicing good record-keeping, complying with the law and much more.

The site provides online tools to help you estimate what taxes you owe, apply for electronic payments, download forms and instructions and access tax information related to education credits or deductions. You can also use the Get Transcript tool in order to access copies of filed returns or tax documents related to prior years.

Additionally, the IRS Website offers support staff who are ready to answer your questions at any time via phone or email. They can help guide you through understanding every step of the process, thus ensuring that you are meeting all compliance regulations.

Authors of taxpayer guides like “Taxpayer Bill of Rights” provide updates when any new rule is released, instructing taxpayers on how new laws may affect them according to their unique circumstances. The IRS website is a great resource for taxpayers who need additional assistance with filing taxes and understanding their responsibilities as taxpayers under federal law.

IRS Publications

The Internal Revenue Service (IRS) publishes a variety of documents that provide guidance and information about filing taxes, understanding tax law, and resolving tax-related issues. IRS Publications are written in plain language and given out for free to taxpayers.

Publications relating to individuals include IRS Publication 17: Your Federal Income Tax, which is a detailed guide that covers various topics from filing status to how to figure taxable income. Pub 505: Tax Withholding and Estimated Tax explains how to make the right amount of estimated payments during the year. IRS Publication 502: Medical and Dental Expenses helps taxpayers understand what kind of medical expenses can be deducted on their taxes. Publication 503: Child and Dependent Care Expenses is a guide for those who need help understanding deductions related to childcare costs.

Businesses should refer to IRS Publication 583: Starting a Business and Keeping Records as an introductory guide, which discusses the basics of setting up a business as well as recordkeeping requirements. Pub 535: Business Expenses explains what can be deducted on tax returns based on business activities. Additionally, businesses may consult with Pub 15-A: Employer’s Supplemental Tax Guide regarding payroll taxes such as Social Security taxes withheld from employee wages or excise tax due on certain types goods or services sold by businesses.

Finally, nonprofit organizations can utilize informtion from IRS Publication 557; Tax Exempt Status for Your Organization – which briefly summarizes what nonprofits need in order to claim non-profit status when filing with the IRS.

Tax Professional Resources

Tax professionals, such as certified public accountants (CPAs) and enrolled agents, have specialized training and qualifications to help taxpayers understand the complexities of tax preparation and filling out tax forms. To find a tax professional in your area, the Internal Revenue Service recommends using its online directory or contacting local Accountants or Tax Professionals through their state societies of CPAs or National Association of Enrolled Agents.

In addition to finding and consulting with tax professionals, the IRS provides a number of resources for those who are filing taxes independently. These resources include:

-IRS Taxpayer Assistance Centers: These local offices provide one-on-one help with tax questions, e-filing forms, scheduled payments and other services to taxpayers who visit in person. Availability varies by location so it is important to call ahead before visiting any office.

-Free File Program: This free program lets people use brand name software products offered through IRS partners to file their federal taxes electronically for free. It also has helpful tips on filing taxes from anywhere in the world, as well as step by step guides on filing returns for different types of consumers such as military service members, residents living abroad and college students.

-Publications: The IRS provides a wide array of publications that provide answers to common questions about different aspects of the tax process such as deductions and credits; detailed instructions for filling out individual income tax forms; helpful guidance on identity theft issues; information on payment options including online payment services; content related to retirement contributions; changes made from year to year in income tax laws; important information related specifically to businesses; compliance courses available free online that cover topics such as how withholding works per state; educational materials offering advice on paying estimated taxes throughout the year; comprehensive tutorials addressing topics such as e-filing returns and applying for extensions; special guidelines distributed frequently intended for homeowners including special rules regarding deductions when they sell their residence property; specific details concerning taxation related to investments like stocks, bonds etc.; practical explanations around employment taxes responsibility including which forms are used when employees are paid or terminated employment agreements with veterans etc..

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