What is Internal Revenue Service (IRS)?
The Internal Revenue Service (IRS) is the revenue service of the US federal government responsible for administering and enforcing federal tax laws. Its main functions include collecting taxes, processing tax returns, and providing taxpayer assistance and education. The IRS is also responsible for interpreting and enforcing the Internal Revenue Code, the laws governing federal taxation in the United States.
What is Purpose of IRS?
The purpose of the Internal Revenue Service (IRS) is to administer and enforce the federal tax laws of the United States. IRS includes collecting taxes, processing tax returns, and providing taxpayer assistance and education. The IRS also interprets and enforces the Internal Revenue Code, the federal taxation laws. The ultimate goal of the IRS is to ensure that taxpayers comply with the tax laws and to promote voluntary compliance through education and enforcement efforts. The revenue the IRS collects funds various government programs and services.
Who Pays IRS Tax?
The Internal Revenue Service (IRS) tax is paid by individuals, corporations, and other entities that earn income or engage in certain transactions subject to federal taxation in the United States.
Individual taxpayers pay federal income tax on their wages, salaries, and other types of income, such as interest, dividends, and capital gains. Additionally, self-employed individuals must pay self-employment tax, including the employee and employer portions of Social Security tax and Medicare taxes.
Corporations and other entities are also subject to federal income tax on their profits or earnings and other taxes such as payroll taxes, excise taxes, and estate and gift taxes.
Also, See: Federal Income Tax