Irs internal revenue service – internal revenue service usa

Irs internal revenue service – internal revenue service  USA

The Irs internal revenue service is a body that is in charge of the federal tax laws that Congress enacts. The IRS has the responsibility of carrying out three main functions. These functions include – tax return processing, taxpayer service, and enforcement of tax laws. Additionally, the IRS conducts criminal investigations. They are also the ones that oversee tax-exempt agencies as well as qualified retirement plans.

irs internal revenue service

How the Irs internal revenue service

The IRS administers the taxation of all-American individuals and companies. It has its headquarters in Washington, DC.

In recent times, individuals and corporations have the option of filing income returns electronically. All thanks to computer technology, software programs, and secure internet connections.

Since the beginning IRS program, the amount of income taxes that use e-file has steadily grown. At the moment, the overwhelming majority file income taxes this way.

When the IRS is not collecting tax, they are managing various tax credits and subsidies for low-and-middle-income families. Subsidies such as the Earned Income Tax Credit, subsidies under the Affordable Care Act, and education tax credits. The education tax credit is that which helps put you or your children through college.

Internal Revenue Service Phone Number

The lines are available from Monday through Friday, from 7:00 a.m. to 7:00 p.m. Alaska & Hawaii follow Pacific Time. Note that the best times to call during April are before 10:00 a.m. Also, note that Monday is the heaviest traffic day. Call on (800) 829-1040

Who Owns the IRS?

The Internal Revenue Service agency is Federal Government Agency.  It is a bureau of the U.S. Department of Treasury. IRS can simply be considered as a “tax administrator”.

They work under the directives of the secretary of the Treasury of the United States. Note that they are not being “owned” by the Treasury, the IRS rather, “works for” the Treasury.

According to the proposal put forward by the IRS recently. They claim that even though Congress did not create the IRS through an act, it is a government agency. For this, they cite the 1971 Supreme Court case Donaldson v. the United States.

For the above case, the court ruled that the IRS is allowed to administer internal revenue laws. And they are to do so as an agency would. As a result, The IRS is of one opinion. An opinion that the U.S. Code grants the Secretary of the Treasury full authority in enforcing tax law. As a result, he/she can appoint an agency to do so.

IRS Leadership

The IRS commissioner is appointed by the President and serves as the CEO. The Senate has to approve the appointee that the President names. The tradition has been in place since the 1950s. Commissioners have the mandate of serving five-year terms in office.

Their main work is to oversee all operations of the IRS. They handle directly or indirectly processing tax returns and enforcing tax laws to the collection of tax.

Origin of Federal Income Tax

The income tax phenomenon has its roots and origins dating back to the Civil War. It was signed into law by then-President, Abraham Lincoln who also created the “Commissioner of Internal Revenue”.  This was in 1862 to raise revenue for the war effort and needs.

The first income tax was in the form of 3% on incomes from $600 to $10,000. Then 5% on incomes over $10,000.

However, that tax didn’t last long due to some circumstances. It was tried again 10 years later in 1872. In the long run, Congress brought back the income tax 22 years later.

This was made possible through the Wilson Tariff Act of 1894 even though that was not permanent. Soon after, barely a year, the Supreme Court ruled that the tax was not lawful.

In the year 1913, 75% of Americans formed a majority to amend the constitution. In answer to that, the government had to impose an income tax.

It was then updated. The first personal income tax was 1% for incomes of $3,000 and above up to $499,999. Then a 6% for incomes of more than $500,000.

After World War 1 took place and another war effort, the top tax rate, was hiked by Congress. It increased to an incredible 77%. It remained like that for 11 years. By 1929, it was reduced to 29%. It later increased again because of the great depression.

Significance of the IRS Logo

The IRS logo is made up of three different images in one:

Eagle – The Eagle image simply represents the United States. Because the national bird is the bald eagle.

Olive Branch – The olive branch signifies peace and mediation, which fosters growth.

Scales – The scale image, signifies justice and fairness for all.

One can say that the IRS aim is for the symbol to express “justice, fairness, honesty, peace, and conciliation”.

Leave a Reply

Your email address will not be published. Required fields are marked *