What Exactly is the IRS?
The Internal Revenue Source (IRS) is a federal agency. Specifically, it is a bureau within the Department of the Treasury. Interestingly, the IRS was first created in 1862 when President Lincoln signed a law to help pay for Civil War expenses incurred by the federal government.
Of course, the IRS of 1862 was of a much different form than the one we are familiar with today. The current IRS was created by the secretary of the Treasury. This was permitted by Congress in Section 7801 of the Internal Revenue Code. The IRS is run by the Commissioner of the IRS, who is currently Charles Rettig. Unlike members of Congress, the IRS Commissioner is not “elected,” rather he is appointed by the President.
As an agency, the IRS is a part of the federal government and is tasked with collecting taxes. It has the authority to create the rules surrounding this process in order to facilitate the agency’s goals. Agencies are created by congressional statutes, which set certain limits on what agencies can and cannot do. The IRS promulgates regulations regarding federal taxes based on the authority given to it by Congress.
Did you know that April 15th has not always been the tax filing deadline? It was originally March 1, and this was because of the timing of the ratification of the 16th Amendment, which permits the federal government to collect income taxes. The professionals at The Center for Financial, Legal, and Tax Planning, Inc. are more than knowledgeable with regard to the IRS. Please contact us at (618) 997-3436 for more information.