What's Happening?
The Internal Revenue Service (IRS) serves as the primary tax administrator and collector in the United States, operating under the Department of the Treasury. Established in July 1862, the IRS was initially tasked with collecting taxes on alcohol, property, and other internal revenue matters. The Sixteenth Amendment, passed in 1913, empowered Congress to levy income taxes without apportionment among states. In 1952, the Bureau of Internal Revenue was officially renamed the IRS. The agency underwent significant restructuring in 2000, creating four major business divisions to enhance its operations. The IRS operates under the Internal Revenue Code, which outlines the legal framework for tax collection and enforcement.
AD
Why It's Important?
The IRS plays a crucial role in the U.S. economy by ensuring compliance with tax laws and collecting revenue necessary for government operations. Its ability to enforce tax laws impacts federal funding for public services and infrastructure. The IRS's efficiency and fairness in tax collection are vital for maintaining public trust and ensuring equitable tax compliance. The agency's restructuring efforts aim to improve service delivery and adapt to changing economic conditions, which is essential for addressing taxpayer needs and enhancing voluntary compliance.
