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.
Several House Democrats have said their support of any tax-code changes is contingent on raising the SALT cap.
The Certified Financial Planner Board of Standards Inc. issues 17 sanctions in its latest round of disciplinary actions.
Firms are supposed to begin tracking data such as customers’ capital gains and losses starting in January.
Bruce and Jeff connect with Lance Dial, partner at Morgan Lewis, to discuss the SEC's proposed new rules related to ESG investing. They talk about the SEC's goal of cracking down on greenwashing, and the challenge of enforcing rules related to something that's evolving.
As digital assets sell off, some crypto industry leaders are realizing that government rules aren't such an evil thing after all.
Digital tokens like Bitcoin and Ethereum are classified as property by the Internal Revenue Service and taxed like stocks and bonds.
The deal pushes Millennium up to 5 million individual client accounts and $47 billion of total assets under administration.
Under Biden's plan, wealthy individuals would owe taxes on the unrealized gains of their assets, in addition to realized gains, a change that would upend long-standing tax principles.
The tax, dubbed the Billionaire Minimum Income Tax by the White House, would hit both the income and unrealized gains of U.S. households worth more than $100 million.
In February, the agency continued to retain 17.6 million tax returns from the 2020 filing season and about 5.9 million pieces of taxpayer correspondence that required manual processing.
The measure clarifies how the prohibition on 'stretch' IRAs should be applied and provides details on implementing the rise in the RMD age to 72.
Many of the processing delays and customer service shortages that have plagued the IRS for years will persist this year, Treasury officials warn.
If Congress finally comes to an agreement on the bill, some provisions could be retroactive. The state and local tax deduction hangs in the balance.
Just 1,275 wealthy families paid $9.3 billion in estate tax last year, while as recently as 2018, the IRS had collected more than $20 billion from nearly 5,500 families.
The agency seized $3.5 billion worth of cryptocurrencies in fiscal 2021, accounting for 93% of all assets seized, and an IRS official says he expects that trend to continue next year.
