Internal Revenue Service Flashcards, test questions and answers
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What is Internal Revenue Service?
The Internal Revenue Service (IRS) is a United States government agency responsible for the administration and collection of taxes. The IRS is the largest revenue collection agency in the US, with over $3 trillion collected annually from individuals and businesses. The IRS ensures compliance with tax laws, collects taxes, administers credits and deductions, and enforces federal tax regulations.As part of its duties, the IRS provides taxpayers with information about filing returns, paying taxes, understanding their rights as taxpayers, and managing their money. Form 1040 is used to calculate individual income tax liability; people can submit it electronically or by mail. The IRS also offers an online payment system for certain taxes owed to them. Taxpayers can contact the IRS by phone or through its website if they have questions or need assistance with any aspect of their filing process. In addition to collecting taxes from individuals and entities that are required to pay them based on established rules and regulations, the Internal Revenue Service also works to prevent underpayment or nonpayment of taxes through investigations into illegal activities such as fraud or evasion. In addition to criminal penalties for those found guilty of tax crimes, civil penalties may also be imposed on non-compliant taxpayers. The Internal Revenue Service plays an important role in upholding our country’s taxation system by ensuring that citizens follow all applicable laws when filing their returns and paying their dues on time each year.