Legal Definitions - IRS

The IRS, which stands for the Internal Revenue Service, is the United States federal government agency responsible for collecting taxes and enforcing the nation's tax laws. Its primary role is to administer the Internal Revenue Code, ensuring that taxpayers comply with their obligations, and providing services to help them understand and meet those obligations.

• Annual Tax Filing
  After receiving her W-2 form from her employer, Sarah uses tax software to prepare and submit her federal income tax return to the IRS before the April 15th deadline. This illustrates the IRS's fundamental role in collecting individual income taxes and managing the annual tax filing process for millions of Americans.

• Business Tax Compliance
  A local bakery owner, Mr. Henderson, receives a letter from the IRS requesting clarification on some deductions claimed on his business's corporate tax return from the previous year. This demonstrates the IRS's function in auditing businesses to ensure compliance with tax regulations and to verify the accuracy of reported financial information.

• Issuing Tax Guidance
  The IRS publishes new guidance on how small businesses can claim a recently enacted tax credit for employee retention. This shows the agency's responsibility not only for collecting taxes but also for interpreting tax laws passed by Congress and providing clear instructions to the public on how to comply with or benefit from those laws.