What Is The IRS?

People often talk about the Internal Revenue Service (IRS) with disdain. Because the IRS is charged with collecting taxes and enforcing tax laws, many people perceive it as some evil entity intent on taking all their money. The reality of the IRS is nowhere near this dramatic. The IRS’ main task is ensuring that the government has a steady stream of income, not persecuting individuals.

The IRS was created during the American Civil War under President Lincoln. In order to fund the war, Congress put an income tax in place and created the Office of the Commissioner of Internal Revenue to administer this taxation. The term “internal revenue,” incidentally, refers to income collected within the country, and contrasts with “external revenue” such as duties and tariffs.

Our government depends on tax money to operate. Sometimes it seems like citizens want the services the government provides, but are unwilling to pay for them. Tax money is necessary for the government to function, and much of it is converted into roads, schools, and services like Medicare. It’s the job of the IRS to ensure taxes are paid. Without that, the government could not function.

The negative aspects of the IRS’ reputation stem from their power to collect taxes and investigate tax-related offenses. Although most individuals and businesses more or less pay their taxes correctly, accidental misinformation on tax forms, tax evasion, and many other problems have in recent years led to the government losing hundreds of billions of dollars. This puts a great deal of pressure on the IRS to enforce tax laws.

Contact Us

If you are considering filing for bankruptcy, an understanding of the IRS’ policies and procedures can be useful. An experienced South Florida bankruptcy lawyer can help you understand tax law, how it relates to bankruptcy, and what you can do to repair your financial wellbeing. For a free evaluation, contact the Boca Raton bankruptcy lawyers of Eric N. Klein & Associates, PA today at 561-353-2800.