preview

The Internal Revenue Service ( Irs )

Better Essays

The Internal Revenue Service (IRS) is part of the Department of the United States Treasury. It is one of the most efficient tax administrators in the world. During fiscal year 2012, the IRS $2.5 trillion in revenue and processed 237 million tax returns. For every $100 it collected in fiscal year 2012, the IRS spent a mere 48 cents. The mission of the IRS is to provide U.S. taxpayers a top quality service by helping them pay their taxes, enforce the laws regarding taxes, and assist taxpayers with understanding their taxes. The IRS values integrity and fairness for all taxpayers. In the U.S., Congress passes tax laws and taxpayers are required to comply. The taxpayer’s role is to understand his/her tax obligations and meet them. The IRS’ role is to help taxpayers be compliant and pursue those who do not pay their fair share.

The Internal Revenue Code, section 7801, organizes the IRS to carry out the responsibilities of the secretary of the Treasury. The secretary is granted full authority to administer and enforce the tax laws and has the power to create the agency (IRS) to enforce those laws. In 1862, President Lincoln and Congress created an income tax to pay war expenses and the position of commissioner of Internal Revenue was created. Ten years later, the income tax was repealed. Congress reenacted the tax in 1894 and the Supreme Court ruled it unconstitutional in 1895. It wasn’t until 1913, when Wyoming ratified the 16th Amendment (giving Congress the

Get Access