What is the IRS & what does it do?

By Rithika Revur3 min read · Posted Feb 11, 2023

11
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
3270
Total Views
9
Total Likes
0
Total Shares

See more posts by Rithika Revur

Comments

More in Financial


Financial » Economics

What are the different Marketing Concepts?

by Degreat Michael ·Jun 12, 2024

9
Views

Learn the oldest marketing concept– production concept, which emphasizes affordability and availability. You’ll discover brands that have applied it. Read more

Financial » Economics

What is GDP? Everything You Need to Know

by Fredrick Ngugi ·Jun 7, 2024

20
Views

Gross domestic product (GDP) is the measure of the total value of products and services produced within a country annually or quarterly. Read on to learn more about GDP. Read more

Financial » Accounting

What is interest?

by Asad Awan ·Jun 3, 2024

18
Views

Learn how interest impacts borrowing, lending, and saving before investing your hard-earned money. Read more

Financial » Accounting

What Are the Different Types of Journals?

by Warren Patterson ·May 24, 2024

19
Views

Journals help keep business finances in check and up to date. Find out what different types of journals are used by businesses and what’s within them. Read more

Recent articles


Legal » Regulations

What is antitrust law (USA Specific)?

by Roxanne Guiney ·Jun 14, 2024

6
Views

The U.S. Antitrust Laws are a collection of acts that protect consumers and the fair market by preventing anticompetitive business practices. Read more

Legal » Regulations

What is a subsidy and what does it do for a product?

by Favour Ndime ·Jun 10, 2024

9
Views

A subsidy is a direct or indirect help to an individual or organization in the form of cash or breaks in production costs or taxes. Read more

Legal » Protections

What is a warranty?

by Asad Awan ·Jun 5, 2024

15
Views

A warranty is a guarantee by a manufacturer to repair, replace, or refund a faulty product. Learn more about the types and significance of warranties. Read more

Legal » Structures

Understanding Corporations: A Detailed Guide

by Geofry Ouma ·May 31, 2024

29
Views

A comprehensive overview of corporations covering key features, advantages, the incorporation process, and their importance in economic growth and innovation. 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.

Loading...

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.