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A Short Overview of the IRS

Sep 26

The Internal Revenue Service (IRS) is the federal agency responsible for administering and enforcing the tax laws of the United States. The IRS is a bureau of the Department of the Treasury and is under the immediate direction of the Commissioner of Internal Revenue.

The mission of the IRS is to "provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all."

The IRS is organized into five operating divisions: Small Business/Self-Employed (SB/SE), Wage & Investment (W&I), Large Business & International (LB&I), Tax Exempt & Government Entities (TE/GE), and the Commissioner's Office. These divisions are further divided into units that work on specific areas of taxation.

The IRS also has several support offices that provide services to taxpayers and businesses, including taxpayer advocate service, appeals, collections, financial management, human capital, information technology, and criminal investigation. 

The IRS is a large and complex organization, but its mission is clear: to help Americans understand and comply with their tax obligations. If you have any questions about your taxes or need help understanding the tax code, don't hesitate to reach out to the IRS for assistance.

IRS offers Tax Relief: 4 Options You Didn't Know Were Available 

When it comes to the Internal Revenue Service (IRS), tax relief is often at the top of most taxpayers' minds. The IRS is responsible for collecting taxes and enforcing the tax code, so it's no wonder that many people are intimidated by the agency. However, the IRS also offers several programs that can help taxpayers who are struggling to pay their taxes. Here are four options you may not know were available.

Installment Agreements

If you're unable to pay your taxes in full, you can set up an installment agreement with the IRS. This allows you to make monthly payments until your tax debt is paid off. You can apply for an installment agreement online, by mail, or over the phone. 

Offer in Compromise 

An offer in compromise (OIC) is an agreement between a taxpayer and the IRS that settles a tax debt for less than the full amount owed. To qualify for an OIC, you must prove that paying your full tax debt would create a financial hardship or that doing so wouldn't be fair given your unique circumstances. 
OICs are not available to everyone, and they can be difficult to qualify for. If you think you may be eligible, you can submit an application online or by mail. 

Currently Not Collectible Status 

If you can't afford to pay your taxes and don't qualify for an OIC, you may be placed in Currently Not Collectible (CNC) status. This means that the IRS has decided to temporarily suspend collection activities because you cannot afford to pay your tax debt. However, just because collection activities are suspended doesn't mean your tax debt goes away; interest and penalties will continue to accrue during this time. 

You can request CNC status online or by calling the IRS directly. 

Payment Plans for Small Businesses and Self-Employed Individuals 

If you're self-employed or run a small business, you have a few different payment plan options available to help you pay your taxes. The two most common are the short-term payment plan and the self-employed individual's tax installment agreement (SEIA). A short-term payment plan allows you to spread out payments over a period of 120 days or less, while a SEIA allows for payments to be made over a period of time longer than 120 days (up to 72 months). You can apply for these payment plans online, by mail, or over the phone.                                                      

Taxes can be confusing and intimidating, but there are options available if you're struggling to pay what you owe. If you're having trouble making ends meet, consider contacting the IRS to discuss your payment options—you may be surprised at what's available to you.