The mere mention of the IRS (Internal Revenue Service) causes many people to tense up and become nervous. This is largely because it’s associated with collecting taxes and conducting audits. However, the role this government agency plays in society extends far beyond these tasks. The following guide helps explain the IRS’s mission and function.

Understanding How the IRS Works

What Is the IRS?

The IRS is a government agency that operates as part of the U.S. Department of the Treasury. It was first created in 1862 and is responsible for enforcing the Internal Revenue Code, which encompasses all the laws that govern taxation. Primarily, it serves to help compliant taxpayers meet their tax obligation and ensure those who attempt to evade the law still pay their fair share of taxes.

What Does It Do?

There are four divisions of the IRS, each designated to focus on different groups of taxpayers. This includes individuals, small businesses, mid-size to large businesses, and nonprofit organizations.

As a whole, the agency has a wide variety of functions to perform, such as processing federal tax returns, securing tax payments, supervising criminal investigations for suspected fraudulent activity, and communicating with taxpayers who need assistance understanding how to act in accordance with the various tax laws.

How Does It Relate to the Average Taxpayer?

Although paying taxes can be stressful, it’s a key element of a well-functioning government. Tax dollars are vital for funding programs like Social Security, Medicaid, and Medicare. They also help to cover costs for foreign affairs, national defense, community development, and many other government services. Without the IRS administering tax laws, taxpayers wouldn’t have access to these important programs and services.

For expert tax guidance you can trust, turn to Donna Sellers CPA in Brownfield, TX. Backed by more than 20 years of experience, this firm provides personalized tax preparation help, allowing clients to enter tax season with full peace of mind. They’ll ensure your documents are in compliance with IRS requirements while strategizing ways to maximize your refund and minimize your liabilities. Call (800) 618-4914 to schedule a consultation, or visit their website to learn more about the services they offer.