What is the IRS & what does it do?

By Rithika Revur3 min read · Posted Feb 11, 2023

46
Views

It's commonly known that when you don't do your taxes, the IRS comes after you. But you might wonder, what does the IRS actually do?. This article will cover this topic and the importance of the IRS.

What is the IRS?

The Internal Revenue Service, commonly referred to as the IRS, is a federal government agency that solely focuses on collecting taxes and enforcing tax laws. The IRS is one of the bureaus of the Department of Treasury and is a public government service. Any income or federal tax will go directly to the IRS to help fund all types of government services. These services are public schools, police stations, firefighter stations, community centers and maintenance of national parks. The IRS not only collects personal but also corporate taxes.

Responsibilities of the IRS

The IRS is a strong organization with the power to enforce and collect taxes. They have investigative teams to ensure all taxpayers are paying their fair share, along with its own court and justice management system. The IRS can seize any money, assets, or properties if taxes are not paid or done incorrectly. The IRS is a strong organization, but the power is needed to ensure that taxes are being collected and distributed. Depending on the circumstances, the IRS sometimes gives money back to taxpayers. In the case that this happens, the taxpayer will receive mail that outlines the tax returns or any money they gained.

The IRS has multiple responsibilities, but here are a few of them:

Taxpayer Services:

These services help taxpayers more easily file their taxes. They also help tax preparers with filing taxes and teach the proper methods and requirements when filing taxes. The services help inform taxpayers about the different items needed for filing their taxes and give support.

Tax Collections and Refunds Issued:

The IRS's main job is to collect taxes. The taxes are given to the federal government in order to to pay for all national services. Similarly, taxes collected by states are used to fund the state governmental services. State and Federal revenue services communicate by sharing data and information on tax files to ensure taxpayers in these states receive their tax returns and are paying their taxes correctly.

Enforcement of Taxes:

The IRS is powerful enough to take property, salary and seize bank accounts if taxes are not paid. They must ensure that everyone pays their taxes to ensure that all public services can be funded and run efficiently. Tax evasion can be a severe problem, and the IRS works to prevent it altogether. The IRS's main job is collecting taxes, and they must do an excellent job to ensure taxes are being collected, which means extreme measures are taken when citizens are not paying their taxes or filing them correctly.

Takeaways

The IRS is vital for the United States government. It helps the federal government in collecting taxes, budgeting, and distributing refund money. The Internal Revenue Service has strict methods for collecting taxes, but these are also important to ensure everyone is paying taxes and the government is able to operate successfully.

References

About The Author

Rithika Revur

12
Articles
6894
Total Views
12
Total Likes
0
Total Shares

See more posts by Rithika Revur

Comments

Your generosity fuels innovation and drives success!

Our resources are assembled by a team of entrepreneurs who donate their time and energy to Pitch Labs to ensure that entrepreneurial resources are available to everyone. Unfortunately, we can't avoid major expenses such as website hosting fees. To ensure our resources remain free to access and use, we rely on donors who are able and willing to give back. Consider donating to be a part of the Pitch Labs mission today!

More in Financial


Financial » Economics

Barter Reimagined: Understanding Countertrade in the Global Market

by Amir Noorani ·Dec 2, 2024

0
Views

Countertrade, a modern twist on bartering, enables global trade by exchanging goods and services directly, bypassing the need for cash in complex economic situations. Read more

Financial » Personal

Why is play important in entrepreneurship and business?

by Ana Bacioiu ·Oct 9, 2024

72
Views

Why entrepreneurs should value play, as a catalyst for creativity as well as a booster for team morale, motivation, and cohesion. Points to concrete ideas and tools for integrating play into your business. Read more

Financial » Accounting

What is cash flow and why is it important?

by Favour Ndime ·Sep 27, 2024

607
Views

Cash flow is a business's lifeline, reflecting the money flowing in and out, helping track income, expenses, and overall financial health of the business. Read more

Financial » Funding

What is venture capital and angel investing?

by Ana Bacioiu ·Sep 13, 2024

224
Views

Discuss two types of startup funding: Venture Capital (VC) and Angel Investors. Understand similarities, differences, and how you can tap into these resources. Read more

Recent articles


Marketing » Advertising

The Shift from 4 Ps to 7 Ps in Marketing

by Amir Noorani ·Nov 29, 2024

7
Views

This article explains the evolution from 4 Ps to 7 Ps in marketing, focusing on how businesses enhance customer experience, efficiency, and branding. Read more

Marketing » Advertising

What is B2B & B2C marketing?

by Aashna. Haryani ·Nov 27, 2024

23
Views

The article discusses business-to-business (B2B) and business-to-consumer (B2C) marketing and the major differences and similarities between the two terms. Read more

Legal » Protections

What is a Trademark and what is the Trademark filing process?

by Aashna. Haryani ·Nov 25, 2024

14
Views

The article aims to inform the reader about a trademark, its importance, and the step-by-step process to file a trademark. Read more

Basics » Getting Started

What is a lean startup?

by Ana Bacioiu ·Nov 25, 2024

10
Views

Understand the mindset of lean startups, where efficiency meets customer-centric innovation, and discover how you too, can build, measure, and learn your way to success. Read more

Join Our Community


Looking for something else? Get your questions answered in our free online learning community!

Entrepreneurial Resources


Jumpstart your next business with our free resource library.

Disclaimer


Our organization cannot give out official legal/fiscal guidance. All articles are written by volunteers and it may be beneficial to contact professionals to assist your understanding of the information and to guide your action. Pitch Labs bears no responsibility for the results of actions taken based off of article content or any other form of assistance given.