See Also:
Cash Flow After Tax
Deferred Income Tax
Ad Valorem Tax
Tax Brackets
Tax Efficiency
Internal Revenue Service (IRS) Definition
The Internal Revenue Service or IRS for short is a government agency underneath the Department of Treasury. It is primarily responsible for administration and collections of federal income taxes.
Internal Revenue Service (IRS) Meaning
The Internal Revenue Service was created during the Civil War and Reconstruction period by President Abraham Lincoln to fund the war effort. Since then the agency has been primarily responsible for funding the U.S. Government operations and services. The IRS is responsible for not only collecting from individuals and businesses, but also preparation and distribution of IRS forms. It is also responsible for conducting audits of individuals or businesses to ensure accuracy and that fraudulent activity has not occured. The IRS is run by a commissioner known as the Commissioner of Internal Revenue. This is a position which is filled by the President. Like the
Securities and Exchange Commission (SEC) the commissioner cannot be fired once appointed. This job security allows the commissioner to perform what is necessary without having to worry about getting fired.