Internal Revenue Service (IRS)
Definition
The US federal agency responsible for collecting taxes and enforcing tax laws. The IRS processes over 150 million individual tax returns annually, issues refunds, conducts audits, and provides taxpayer assistance. The agency is funded through congressional appropriations and has been undergoing a major modernization effort since 2022 with increased funding from the Inflation Reduction Act.
Example
You file your return with the IRS by April 15. They process it, check it against information from your employers and banks, and either issue your refund or send you a notice if they find discrepancies.
Related Terms
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