Internal Revenue Service

Office address: 1111 Constitution Ave NW, Washington, DC 20224 (official headquarters); 1500 Pennsylvania Ave NW, Washington, DC 20222 (Treasury Department location)
Website: irs.gov
Year established: 1862
Company type: government agency
Employees: 90,500+ (2024)
Expertise: tax collection, tax law enforcement, taxpayer assistance, tax return processing, tax compliance, tax fraud investigation, tax-exempt organizations, tax credits, business tax services, identity protection
Parent company: Department of the Treasury
Key people: Scott Bessent (commissioner), Frank Bisignano (CEO), Carolyn Singh (CoS), Kenneth Corbin (chief, taxpayer services), Jarod Koopman (chief tax compliance officer), Dottie Romo (COO), Kaschit Pandya (chief information officer)

The Internal Revenue Service is the main US tax agency and is based in Washington, DC. It collects federal taxes, enforces tax laws, and processes over 267 million tax returns, collecting $5.1 trillion as of 2024. The IRS helps people and businesses file returns, issues refunds, and works to prevent tax fraud.

History of the Internal Revenue Service

The story of the IRS stretches back to 1862, when President Lincoln and Congress created the Bureau of Internal Revenue to help fund the Civil War. That first income tax was a response to the country’s urgent need for revenue, and it set the foundation for a permanent tax system. Over time, new laws and amendments gave Congress the power to collect taxes and shaped how Americans would support their government.

Milestones and modernization

The agency’s early years saw challenges like the Whiskey Rebellion and the burning of the Treasury building in 1814. By 1913, the 16th Amendment gave Congress the authority to tax income, and the Bureau introduced Form 1040, which became a household name. The Internal Revenue Service handled prohibition enforcement and brought down notorious figures like Al Capone for tax evasion. It also managed Social Security tax collection as the country expanded.

Technology, reform, and public service

The IRS embraced technology with punch cards, electric typewriters, and computers by the mid-20th century. It also:

• shifted from paper-based filing to electronic returns
• introduced toll-free phone service
• expanded support in multiple languages

The agency reorganized in 2000 to better serve taxpayers and launched IRS.gov, which now handles millions of visits each year.

Internal Revenue Service’s recent changes

In 2023, the IRS announced it would end surprise visits to homes and businesses due to safety concerns and a push for modernization. This move came as the agency invested billions in technology to improve enforcement and customer service. In 2025, the Internal Revenue Service released new inflation adjustments for 2026. These changes reflect the One, Big, Beautiful Bill and offer taxpayers and advisers fresh planning opportunities.

IRS services

The Internal Revenue Service provides services and tools that simplify tax filing and help keep taxpayer information secure:

• refund status: check the progress of a federal tax refund
• tax records and transcripts: access and request past tax records
• make a payment: pay taxes online quickly and securely
• forms and instructions: download and view all tax forms
• identity protection PIN: secure accounts with a unique PIN
• employer ID number (EIN): apply for a business tax ID
• amended return status: track changes to previous tax returns
• tax help tools: use online resources for tax questions

The IRS also offers support for businesses, helps prevent tax fraud, and offers guidance for tax-exempt organizations. Its digital services and customer support make it easier for people to stay compliant and informed.

Culture and corporate values

The Internal Revenue Service states that workforce development and employee culture are key priorities as it modernizes. According to the agency, building skills and supporting employees helps improve service for taxpayers and business professionals. The IRS lists its core values as:

• honesty and integrity
• respect
• continuous improvement
• openness and collaboration
• personal accountability

Employee benefits and career development

The Internal Revenue Service says that it provides many career options, from entry-level to management positions. Staff can work in areas like accounting, IT, or design, with room to advance. Employee benefits include:

• paid time off: 13 holidays and up to 26 days leave yearly
• health and life insurance: coverage for staff and families
• retirement savings: federal pension, Social Security, and Thrift Savings Plan
• work-life balance: steady hours and support programs
• career development: ongoing training and advancement
• childcare subsidy: up to $5,000 per year for eligible staff
• student loan repayment: up to $10,000 per year, $60,000 total
• federal pay: salaries based on position, grade, and location

Regarding their benefits and support programs, the IRS Veterans Program Office offers non-paid internships and special hiring paths for veterans and wounded warriors. Eligible veterans and some family members receive preference points or top category placement in federal hiring.

About Commissioner Scott Bessent and key people

Scott Bessent became acting commissioner of the Internal Revenue Service in August 2025 after serving as the 79th Secretary of the Treasury. Before these roles, Bessent led Key Square Capital Management and built a long career in global investment management. He is a Yale graduate from South Carolina and is known for his expertise in currency and fixed income.

Leadership team and key roles

The IRS is led by Bessent, who works with key leaders to oversee all divisions and support functions:

• Frank Bisignano is CEO, guiding overall strategy and operations for the agency
• Carolyn Singh serves as acting chief of staff, supporting executive leadership and daily priorities
• Kenneth Corbin works as chief, taxpayer services, focusing on public assistance and service improvements
• Jarod Koopman is acting chief tax compliance officer, overseeing compliance and enforcement programs
• Dottie Romo serves as COO, managing daily operations and internal processes
• Kaschit Pandya is chief information officer, leading technology and data initiatives for the Internal Revenue Service

The leadership team is structured to address the needs of different taxpayer groups. The Internal Revenue Service operates under the authority of the Treasury secretary as outlined in the Internal Revenue Code.

The future at the Internal Revenue Service

The Internal Revenue Service halted most operations and furloughed nearly half its staff during the October 2025 government shutdown. This pause delayed tax refunds, slowed compliance actions, and complicated the rollout of new tax changes, directly affecting financial professionals and their clients. The agency’s ability to manage future tax reforms and serve taxpayers depends on how quickly it can recover from these disruptions.

Building on these challenges, the IRS announced higher retirement contribution limits for 2026, giving savers and advisers new planning options. The agency raised 401(k) and IRA caps, adjusted catch-up contributions, and updated income thresholds for tax benefits. These updates help Americans save more for retirement and show the Internal Revenue Service’s ongoing role in supporting long-term financial planning.

The latest Internal Revenue Service news