The IRS: What's it All About?

If you live in America, chances are that you have heard of the Internal Revenue Service, more

commonly referred to as the IRS. This is the agency that insists you file and pay your taxes each year. But, what do you really know about this federal giant? Before you write that next check or fill out your next tax form, why not take a moment to understand the big picture of this agency?  

The IRS: A Basic Definition  

While different people have varied views on the IRS and how it fits into the structure of this country, it is not designed to just be some evil entity that takes your money. Instead, it’s a federal agency that has been taxed (pun intended) with collecting tax revenue from individuals and businesses, which it then hands over to the federal government. The IRS has a lot of power, especially when it comes to its main job: collecting taxes. Thus, like it or not, you do have to follow the rules and policies it sets forth. Otherwise, you could find yourself in a whole lot of trouble.  

What the IRS Does  

While collecting taxes is the IRS’ main job and, of course, what it is known for, it has other duties as well. It’s responsible for processing tax returns, providing helpful information to taxpayers, sending out refunds and stimulus payments when they’re owed, and enacting investigations and audits. The IRS does these things for just about every working adult in the country, so it's really no surprise that it’s often very busy and that you might have to wait a while when you call the IRS with a question.  

The Bottom Line  

Without the IRS, people wouldn’t have to pay taxes. But, without taxes, Americans wouldn't enjoy many of the protections and conveniences they currently take for granted. So, while you might still grumble the next time you have to pay taxes, remember that the IRS is responsible, at least in part, for a lot of the comforts Americans enjoy, and, like it or not, it has an important role to play in modern society.