Learn personal and professional finance terms to keep you in the know
The Internal Revenue Service, or IRS, is the federal agency responsible for collecting taxes and enforcing the tax code in the United States. It processes income tax returns, issues refunds, and audits filings to ensure compliance with federal tax law. Beyond collection, the IRS also administers programs like the Earned Income Tax Credit and oversees retirement account rules that affect how you save and withdraw money over your lifetime.
Most people interact with the IRS once a year at tax filing season, though the agency can also reach out directly if there's a discrepancy, an audit, or an unpaid balance. Understanding how the IRS works can make tax season feel less intimidating and help you respond appropriately if you ever receive a notice.
