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.
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.
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.
The IRS embraced technology with punch cards, electric typewriters, and computers by the mid-20th century. It also:
The agency reorganized in 2000 to better serve taxpayers and launched IRS.gov, which now handles millions of visits each year.
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.
The Internal Revenue Service provides services and tools that simplify tax filing and help keep taxpayer information secure:
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.
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:
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:
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.
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.
The IRS is led by Bessent, who works with key leaders to oversee all divisions and support functions:
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 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.
More affluent Canadians are flocking south for the warm winter sun and cheap real estate deals
In light of a recent IRS decision that took some by surprise, there's one options strategy we're not likely to see anymore
Former Merrill exec Bob McCann is helping to spark a turnaround in the UBS wealth management unit
Three independent governors elected to the Finra board in August are already drawing fire from critics who say that they have abandoned the reform platform that got them elected in the first place
Financial advisers are bulking up their resources — and bracing for client complaints — as they prepare for the Jan. 1 deadline to begin complying with new cost basis rules.
<i>The following is an edited transcript of the webcast “Options strategies advisers can use now,” held July 20 in New York. It was moderated by deputy editor Evan Cooper and senior editor Dan Jamieson. </i>
The Financial Industry Regulatory Authority paid its top 10 executives a combined $11.6 million last year amid criticism from member firms that the brokerage industry watchdog's managers are overpaid.
Finra's board of governors has agreed to take action on three of seven proxy proposals approved by members in August.
Independent representatives and broker-dealers gained allies in the House leadership who will work with them to maintain their reps' status as independent contractors
The good news: the clock ran out on a bill that could have ultimately stripped brokers' of their independent contractor tax status. The bad: the issue may come up again in two years.
Handing over Derek Jeter's milestone ball has made a celebrity out of Christian Lopez -- and the financial implications also could have his head spinning.
UBS AG, Switzerland's biggest bank, will probably report a fourth straight quarterly profit tomorrow and the lowest wealth management redemptions since 2008.
Hernandez evaded paying taxes on $8.8M; advised wealthy clients on -- yep -- taxes and offshore trusts
U.S. citizens and residents with UBS AG accounts are racing the clock to disclose their secret holdings to the Internal Revenue Service after the Swiss Parliament ratified an agreement to surrender the names of 4,450 bank clients, tax lawyers said.
It is likely that nothing will be known about the tax rate for 2011 until after the November elections. History shows us that if everyone knows that taxes are going up, taxpayers will employ strategies to accelerate income into this year.
