What exactly is the IRS, and what role does it play in the U.S. government?
I hear commercials about people owing money to the I.R.S. and lawyers offering to protect people from it. I also hear the I.R.S. monitors suspicious activity. What happens if you're targeted/caught by the I.R.S.? Does it really enforce anything? What does it stand for? Thanks for any insight.
- 1 decade agoFavorite Answer
IRS (Internal Revenue Service) is a Federal Government Agency that is responsible for the collection of federal taxes, and the enforcement of tax regulations.
They process all federal tax claims, and also monitor activity. For instance, if you receive income from a job, you receive a tax form that displays your income and tax liability (W2), a copy of this document is also sent to the IRS... So if you claim that you made $50,000 on Your taxes, but your tax forms show that you actually made $60,000, the IRS will come after you for the owed taxes on that extra $10,000.
They also audit taxes, both randomly and based on suspicion. These audits are done to ensure that you have proper evidence for your tax write offs.
As far as enforcement... They won't arrest you themselves, but they will report you to the FBI if necessary, and they could have you charged with tax evasion. Tax evasion will cost a lot of money in penalties and possible jail time.
- 1 decade ago
Internal Revenue Service.
They are the government body entrusted with the task of making sure you are taxed "appropriately"
If you are "caught" by the IRS that generally means that you have been caught not paying taxes.
This is generally followed by a period of mid-long term incarceration, unless you are Tim Geithner, in which case you get a reward and become the new secretary of the treasury.
- PossumLv 61 decade ago
Internal Revenue Service
They collect taxes. If you have some sort of suspicious activity they can investigate you. If they find you have been evading taxes they can throw you in jail and take everything you own.
- 1 decade ago
They collect the tax to buy the bombs and missiles that make America great.
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- Anonymous1 decade ago