Internal Revenue Service (IRS): What Is It, And How Auditing Works?

IRS in 1862

The IRS, established in 1862, administers US tax laws, collects federal taxes, and conducts audits to ensure compliance with tax regulations.

Pivotal Agency

The IRS serves as the pivotal agency collecting taxes, processing returns, and issuing refunds, with a budget structured across key functions like taxpayer services and enforcement.

IRS Audits

IRS audits are conducted through mail or in-person interviews, initiated based on random selection or related examination of tax returns.

Filing Taxes

Filing taxes involves using forms like 1040 for individual taxpayers and 1120 for corporations, with the option to use specialized tax software for electronic filing.

Crucial Federal Body

The IRS, a crucial federal body, oversees tax collection and enforcement, playing a central role in maintaining tax compliance within the United States.