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.
Genworth's Total Living Coverage Annuity can also be covered through a tax-free 1035 exchange out of an old annuity or life insurance product.
Need help with your taxes? Good luck reaching someone on the phone at the Internal Revenue Service.
Law enforcement officials go undercover to catch fraudsters, scammers and crooks
The temporary suspension of the estate tax is not spurring high-net-worth Americans to take action on their estate plans.
Banking giant Wachovia Corp. will pay $160 million to settle a federal investigation into laundering of illegal drug profits through Mexican exchange houses in the largest case of its kind ever brought against a U.S. bank, prosecutors said Wednesday.
The fate of a lawsuit brought by two brokerage firms against NASD over its 2007 merger with the New York Stock Exchange's regulatory unit could be decided this month.
With the estate tax laws set to expire by year-end — and no clear indication when Congress will address the issue — some financial advisers and attorneys see an opportunity for their high-net-worth clients in this extremely muddled situation.
Finra's board of governors will review allegations that Securities and Exchange Commission Chairman Mary Schapiro — along with other senior Finra executives — received excessive compensation when she was chief executive of the self-regulatory organization for the brokerage industry.
The fate of a lawsuit brought by two brokerage firms against NASD over its 2007 merger with the New York Stock Exchange's regulatory unit could be decided this month.
Retirement savings for workers automatically enrolled in individual retirement accounts under the administration's fiscal 2011 budget proposal would be invested in Roth IRAs — unless they specifically chose a traditional IRA.
The life settlements and life insurance industries are criticizing President Barack Obama's 2011 budget proposal, which includes provisions that would require additional reporting to the IRS for life settlements and would impose taxes on corporate-owned life insurance.
As the clock wound down on the Federal estate tax late last year, some financial advisers and attorneys saw an opportunity for their high-net-worth clients in this extremely muddled situation.
Remember the last scene of “The Shawshank Redemption,” when Andy Dufresne is fixing his boat on the beach in Mexico? I've always loved the resolution of that movie because our innocent hero has triumphed over evil and walked away with enough money to live the rest of his life exactly as he wants.
A federal judge refused Monday to postpone prison or consider a lighter sentence for a former Swiss banker-turned-informant who helped launch a massive U.S. tax evasion investigation into banking giant UBS AG.
