History of the IRS and How it has Evolved to its Current State

Running head : Evolution of Internal Service Revenue

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Introduction

Internal Revenue Service is an agency of the United States federal government that deals with tax collection and enforcement of tax laws It belongs to the federal government 's department of treasury . The agency has a mission to make the tax payers understand their roles in the nation and to ensure that they pay the taxes . These missions are set and written under a statement that indicates the role of Internal Revenue Service (Commerce

Clearing House , 2005

The statement reads that the tax laws are passed by the congress and that the tax payers should comply to tax and payment rules , that the tax payer has the role of understanding the reason for paying tax and complying by paying tax , and that the agency , has the responsibility of making those citizens with complains about tax rates , conditions and other tax laws understand them , and ensuring that those individuals that evade taxation do pay their taxes (Commercial Clearing House , 2006

The need for interdependence was realized in the year 1862 when the tax paying agency was formed . During war times , the citizens of United States of America needed protection from other countries , the government could not raise all the funds to meet war expenses , under the rule of the then president Lincoln and the United States congress , the government decided to seek funds from the public (Schmeckebier and Eble 2007

This then was the beginning of taxation . There are various reasons for taxation and these are the basis for formation of the Internal Revenue Service (Schmeckebier and Eble , 2007

Internal Revenue Service deals with excise taxes , estate , corporate and gift taxes as well as collects taxes from employment and individuals It is responsible for the administration of all types of taxes (Commerce Clearing House , 2006

Internal revenue Service as has been shown has the responsibility of formulating laws on taxes and collecting taxes from the citizens of United States of America . Due to the changing world and new technology the Internal Revenue Service agency has evolved and formed new operation procedures with different new structures . Today 's Internal Revenue Service has changed due to one act that was passed in the year 1998 operating for a long period of time and other factors that will be discussed . The act which was known as the restructuring and reform act changed the system of Internal Revenue Service into a modern and reorganized one (Shafiroff , 2008

Internal Revenue Service agency has a three commissioner level organizational structure which was developed to ensure accountability and support for the structure of the agency . These commissioner level organizations are the commissioner , the services and enforcement deputy commissioner and the operations and support deputy commissioner . This is the structure of the Internal revenue Service currently (Commercial Clearing House , 2006

Internal Revenue Service Administration law enforcement

Apart from revenue collection , Internal Revenue Service issues rulings on revenue and private letter rulings . The rules and regulations on...