The Internal Revenue Service

The Internal Revenue Service Synopsis

The Internal Revenue Service (IRS) is responsible for (1) collecting most of the revenue that funds federal government agencies and programs, and (2) enforcing taxpayer compliance with federal tax laws through activities such as taxpayer assistance and audits. There are many types of taxes. Income taxes are levied by federal and state governments on wages, investments, and other forms of income.

Corporate income tax is levied by federal and state governments on the profits of a business. A tax credit is the amount that taxpayers generally claim on their tax returns to reduce their income tax. Eligible taxpayers can use them to potentially reduce their tax bill.

A tax-advantaged account is a special savings account that's designed to give you additional tax benefits in exchange for saving money.