The Internal Revenue Service is an agency of the U.S. Department of the Treasury that deals with the administration and enforcement of tax laws in the country. Congress passes the tax laws that citizens must comply with, while the IRS ensures that these taxpayers understand these laws and fully meet their tax obligations, explains the IRS.Continue Reading
People file their personal and business taxes with the IRS every year. Tax laws vary for small businesses, self-employed individuals, corporations, charities, nonprofits and government entities, according to the IRS. People may file taxes online or through the mail, with the IRS setting the filing deadlines.
Depending on their tax situations, some people are eligible for refunds from the IRS. 90 percent of refunds go through within 21 days, states the IRS. The U.S. tax code also includes credits and deductions to help families and businesses with their financial situations. For example, there are tax credits for having children and for small businesses that contribute towards their employees' health care costs.
The IRS also deals with people who do not file their tax returns on time or refuse to file entirely. There are failure-to-pay penalties and failure-to-file penalties, notes the IRS. Penalties for filing late or refusing to pay are usually a percentage of a person's unpaid tax returns.Learn more about Taxes