The IRS is a bureau of the United States Internal Revenue Service. As the name suggests, the IRS is an agency of the U.S. federal government. The IRS can ask for information about a person’s income, taxes, or assets. They are also responsible for collecting taxes and social security numbers. Anyone can file taxes, but the IRS is responsible for making sure any money owed is paid. The IRS is the federal bureau that oversees tax collection.
Introduction
The Internal Revenue Service (IRS) is the agency in charge of collecting taxes in the United States. This instance is responsible for fiscal management, as well as compliance with the tax laws of the country. It is part of the Department of the Treasury and has powers such as the administration of the Internal Tax Code and the application of federal tax laws.
You may not know that the IRS is an independent agency of the US government, but it has the power to change tax laws by issuing taxpayer guidance. The IRS is the organization that is responsible for collecting and enforcing taxes in the USA. The IRS provides guidance and information about the importance of tax law compliance.
Purpose
The main purpose of this institution is to help taxpayers comply with their tax commitments. In this way, it guarantees its main objective, which is the collection of income taxes. In addition, it contributes to the regulation of corporate taxes, donations, internal and patrimonial taxes.
On the other hand, the signs for an audit increase if the taxpayer does not report the correct amount of income. Likewise, cases are examined where a higher than normal amount of deductions is claimed. Likewise, disproportionate contributions to donations or charitable works are studied.
How does the IRS work?
Federal taxes are a tax liability for businesses and most American citizens, especially the working population. In this sense, every natural or legal person that generates income must pay on their taxes received during the fiscal year.
The tax filing and payment process for natural persons normally ends on April 15. To do this, you must have the taxpayer’s identification number and all the documents related to the tax return. If you do not have the taxpayer identification number, you can use the IRS Personal Taxpayer Identification Number (ITIN).
How to pay your taxes in the United States?
Currently, you can pay your taxes by making an electronic transfer to the IRS from your bank account. In addition, it is possible to use your debit or credit card. Similarly, you have other methods that include making a bank transfer on the day you file your return electronically.
If you do not have electronic means to make your payment, you can use other alternative methods. First, you have the option of sending a personal check, cashier’s check, or money order by mail. The same must be made in the name of “US Treasury”, additionally it is necessary to include the following information:
- Names and address
- Phone number
- Social Security number or employer identification number
- Fiscal year
- Related tax form or notice number
On the other hand, if you wish to pay in cash, it will be necessary to request an appointment in person at an IRS Taxpayer Assistance Center. To do this, you can call the number: (844) 545 5640. In this line, it is important to keep in mind that you must request this appointment between 30 and 60 days before your estimated date to pay.
Finally, if it is a company, legal entity or requires a large payment, you must use the Electronic Tax Payment System. However, to use this service it is necessary to be previously registered.
How do you know if the IRS is going to do an audit?
As part of the functions of the IRS, this entity applies an audit to a select part of the income tax returns made each year. The purpose of this process is to verify the veracity of the information provided by the taxpayers. As stipulated by the tax laws, where the amount of taxes declared must be exact. The reasons why the Internal Revenue Service conducts an audit may vary from case to case. However, it is frequent that it is carried out when the taxpayer declares a higher income compared to previous periods.
However, it is common for said entity to apply a tax review to natural persons who run their own business. This may be due, perhaps, to the variation in income that the frequent economic activities in these occupations tend to present. On the other hand, the signs for an audit increase if the taxpayer does not report the correct amount of income. Likewise, cases are examined where a higher than normal amount of deductions is claimed. Likewise, disproportionate contributions to donations or charitable works are studied.
