Nepedia
Back to Discover
Fluent Reader
📖

Internal Revenue Service

society Maturity 11-13 politics Next article →

This article covers sensitive topics: politics. Parents can manage visibility in Parental Controls.

The Internal Revenue Service, or IRS, is a very important part of the United States government.

IRS Sign
IRS Sign

This agency belongs to the Department of the Treasury. Its main job is to collect federal taxes from people and businesses. This money is used to fund the entire federal government. The IRS also helps people by providing tax assistance. They also make sure people follow the rules of the Internal Revenue Code. This code is the main set of laws about taxes in the country.

Department of Treasury retirement reception of Beth Tucker 01
Department of Treasury retirement reception of Beth Tucker 01

Collecting taxes is a huge and organized job. The IRS must process millions of different tax returns every single year. In the 2023 fiscal year, they processed more than 271.4 million returns. This included over 163.1 million individual income tax returns. To do this work, the agency uses many different tools. In the past, workers used paper, pens, and mechanical calculators. They even used machines with punch cards to sort information.

1920 tax forms IRS
1920 tax forms IRS

Today, they use modern computers to handle the massive amount of data.

The history of the IRS began during a very difficult time. In 1862, the United States was fighting the American Civil War. President Abraham Lincoln and Congress created an office to collect taxes to pay for the war.

George S. Boutwell, the first Commissioner of Internal Revenue Service
George S. Boutwell, the first Commissioner of Internal Revenue Service

George S. Boutwell served as the very first Commissioner of Internal Revenue. This first income tax was only meant to be a temporary measure. It helped pay for more than one-fifth of the Union's war costs. However, the tax was allowed to expire ten years later.

Things changed again in 1913 with a major rule change. The Sixteenth Amendment to the Constitution was ratified that year. This amendment gave Congress the power to tax income directly. Because of this, the Bureau of Internal Revenue was created. In 1953, the agency was renamed the Internal Revenue Service. Over the years, the agency has changed many times to work better. For example, in 1954, the deadline to file taxes moved to April 15.

NYC IRS office by Matthew Bisanz
NYC IRS office by Matthew Bisanz

In 1998, the agency reorganized into four different operating divisions.

The IRS plays a massive role in the modern economy. In 2023, the agency collected about 4.7 trillion dollars. This amount is about 96 percent of the money used to run the federal government.

Figure 1 IRS Appropriations for Fiscal Years 2000 to 2019 (49395060466)
Figure 1 IRS Appropriations for Fiscal Years 2000 to 2019 (49395060466)

While the IRS is very important, it sometimes faces hard challenges. The agency has dealt with budget cuts and a smaller workforce. Some people also disagree with how taxes are collected. Even with these challenges, the IRS continues to help fund the nation's most important priorities.

420 words

Where will your curiosity go next?

Keep exploring at your chosen reading level.

🖼️ Images & Media (7)
File:IRS Sign.JPG
IRS Sign.JPG
File:George S. Boutwell, the first Commissioner of Internal Revenue Service.jpg
George S. Boutwell, the first...
File:1920 tax forms IRS.jpg
1920 tax forms IRS.jpg
File:Department of Treasury retirement reception of Beth Tucker 01.JPG
Department of Treasury retirement...
File:20220826 Share of unpaid taxes, by income level - area chart, treemap - NYTimes - Dept of Treasury.svg
20220826 Share of unpaid taxes, by income...
File:NYC IRS office by Matthew Bisanz.JPG
NYC IRS office by Matthew Bisanz.JPG
File:Figure 1 IRS Appropriations for Fiscal Years 2000 to 2019 (49395060466).jpg
Figure 1 IRS Appropriations for Fiscal...
More to explore

What is Nepedia?

A free, ad-free encyclopedia for children. Every article is written at five reading levels, so the same page works for a five-year-old and a fifteen-year-old — use the level switcher above to see this one change. No account needed to read.