The revenue service which is responsible for the collection of taxes in the United States is known as the Internal Revenue Service (IRS). The IRS comes under the Department of the Treasury and the Commissioner of Internal Service is the director. Apart from the collection of taxes, the proper understanding and implementation of the Internal Revenue Code is the
responsibility of the IRS.
The National Capital headquarters of the IRS is situated in Washington D.C. the major computer programming center is in the state of Maryland. At present, there are ten service centers which are operated by the Internal Revenue Service. Tax returns are filed and sent to these centers from all over the country through mail.
These centers also carry out the processing of taxes; various types of taxes are processed at distinct centers. For instance, there is a dedicated center for processing individual income taxes and a different one for corporate income taxes. Besides all these centers, the IRS also has 3 more computer centers that are located in various locations in the United States.
The income tax returns filed by the taxpayers all over United States are passed on to the IRS. The IRS checks each and every return and assesses it for accuracy. The annual income, gross income and other parameters such as tax deductions, credits are checked in order to confirm that everything is in proper order. If everything is perfect, the return gets accepted. If not, a notice is sent to the taxpayer and the further procedures are followed. If an agreement between the IRS and taxpayer is not reached and any dispute arises, the case may be taken to Tax Court where a full trial is conducted and the issues are resolved. The IRS has to go through all these procedures for individual income taxes, corporate taxes and other types of taxes such as payroll taxes and excise duties.
The IRS is also a bureau that tracks down tax frauds. It has under itself a police department from which it takes help in such cases. If someone is found guilty of a tax fraud, the preparation and fighting of case is also a practice that the Internal Revenue Service follows. Implementation of the tax laws is another task which the bureau performs. While doing so, if anyone is found guilty of breaking the rules, the IRS has the right to charge penalty on the unpaid amount of taxes. All in all, the IRS is a very busy organization which has everything to do with taxes in the United States.