How the IRS Works

The Internal Revenue Service (IRS) is the federal agency responsible for collecting taxes and enforcing U.S. tax laws. Each year, it processes hundreds of millions of tax returns from individuals and businesses, making sure the correct amount of tax is paid.

The IRS also issues tax refunds, manages payment plans for those who owe, and conducts audits when something on a return doesn’t match their records. It works with employers to ensure payroll taxes are withheld correctly and partners with state agencies to share information.

In short, the IRS keeps the tax system running—collecting revenue to fund federal programs while making sure everyone plays by the same rules.