The IRS Explained: How Does the IRS Work?
Every April 15, as taxes are due and people rush out to their accountants to dot the i’s and cross the t’s, the shadow of the internal revenue service, or the IRS, looms. If you miss the deadline, take a deduction you’re not qualified for, or even worse, fail to keep your business-related receipts, will the IRS hunt you down?
This fear and anxiety over the IRS are primarily attached to the fact that most people don’t understand the IRS or how this essential arm of the federal government works. So, let’s answer some quick FAQs about the IRS and how they operate.
What is the role of the IRS?
The IRS is the government agency that oversees the U.S. tax system, including collecting tax returns, processing them, conducting audits as necessary, and everything else associated with the tax system. The IRS is in charge of enforcing and, importantly, interpreting all tax code laws passed by Congress.
Who runs the IRS?
The IRS is part of the federal government, specifically under the Executive Branch of government headed by the U.S. President. The IRS head is a Commissioner appointed by the President every five years, subject to Congress’s approval.
How do I get in touch with the IRS?
The IRS website contains a wealth of information to answer all the questions you may have, including contact information and more. You can go to www.irs.gov to learn more. If you prefer to talk to a live agent, there’s also a toll-free number for personal income taxes at 1-800-829-1040 and business taxes at 1-800-908-4490.
What does the IRS do outside of tax season?
While you may only think about the IRS and its role with your taxes during the push to April 15, the truth is the IRS is continually fulfilling its tax-focused functions. They’re keeping up with processing and handling all the federal taxes collected throughout the year, including income taxes, business taxes, and more. Additionally, they are continually doing due diligence, updating systems, performing audits, and everything else associated with the tax system.
If I make a mistake on my taxes, what will the IRS do to me?
If you find you erred when filing your taxes, don’t panic. The best action to take is to get in touch with the IRS as soon as possible to learn how to rectify the situation or to consult an expert tax accountant who can help you out.
How do I keep updated on new changes to the tax code and how the IRS works?
Thanks to new laws and regulations, there are changes to the tax code every year. These changes are published publicly on the IRS website, incorporated into official IRS documents you fill out and discussed widely in the media. Still, if you’re unsure about the new tax code changes, the best course of action to take is to get in touch with a tax expert.
Interactions with the IRS may seem intimidating, but they don’t have to be. If you’re not sure about how to fill out your personal or business taxes, if you’re fearful of an audit, or you have any questions about the tax code, get in touch with a registered tax expert. Tobin & Collins is here to be your friendly tax adviser, guiding you professionally through tax season. Get in touch with us today to learn how we can help.