IRS

What Is the IRS?

The IRS stands for Internal Revenue Service. This government agency is responsible for collecting taxes and enforcing tax laws in the United States. If you earn income in the U.S. or have U.S.-tax responsibilities, you need to collaborate with IRS representatives.

Short History of the IRS

The Internal Revenue Service was first created during the American Civil War. In 1862, President Abraham Lincoln established the Office of the Commissioner of Internal Revenue to collect taxes that would help fund the war. By the next year, the agency had already collected over $39 million (an equivalent of nearly a billion dollars today).

In 1913, Congress passed the 16th Amendment, which gave the government the authority to collect income taxes. That same year, the Bureau of Internal Revenue was established. A year later, the first version of the tax return form (Form 1040) was introduced.

The agency officially became the Internal Revenue Service in 1953. In 1954, it set the familiar April 15 tax filing deadline. 

What Does the IRS Do?

In simple terms, the IRS:

• Collects taxes: Income tax, corporate tax, payroll tax, and more.

• Administers tax laws: Processes tax returns, issues refunds, and conducts audits.

• Offers taxpayer assistance: Provides forms, guidance, and tools.

• Enforces compliance: Reviews returns and handles penalties for mistakes.

The funds received by the IRS help the U.S. government run services like national defense, roads, social security, Medicare, and more.

Who Oversees the IRS?

The IRS is part of the U.S. Department of the Treasury. It’s led by the Commissioner of Internal Revenue, who is appointed by the President and confirmed by the Senate. The agency is accountable to Congress and the Treasury Secretary.

How to Contact the IRS

If you need to reach the IRS to ask questions or file documents, you have several options. 

• By phone: There are different numbers for individual, business, and international taxpayers (e.g., 267-941-1000 for international calls)*.

• Online: Use the official IRS website (irs.gov) to access forms, view your tax account, check refund status, and use helpful tools. Here is our guide to creating an ID.me account with the IRS.

• By mail: You can send forms or correspondence to the address listed on IRS.gov or on the forms you receive.

• In person: You can receive direct assistance by visiting Taxpayer Assistance Centers in the U.S**.

For American citizens in Israel, interacting with the IRS may involve filing U.S. taxes from abroad, requesting an EIN, or communicating about foreign-earned income. The easiest way to handle the majority of the tasks is to take full advantage of the IRS website. 

If you are an American in Israel (or an Israeli with U.S. tax ties) and need help navigating tasks related to the IRS, please contact Philip Stein & Associates for expert guidance.

Sources: 

*https://www.irs.gov/help/help-with-tax-questions-international-taxpayers

**https://www.irs.gov/help/irs-taxpayer-assistance-centers-providing-in-person-itin-document-review