
Who is IRS?
The Internal Revenue Service is the revenue service of the United States federal government. The agency was established in 1862 and is based in Washington, D.C.
It is responsible for collecting taxes and overseeing the American tax system to ensure compliance with laws, consistent administration, and equitable treatment for all Americans regardless of socio-economic group or geographic location.
What does IRS do?
IRS administers most of the country’s federal tax laws, which are enacted by the U.S. Congress as Internal Revenue Code (IRC) statutes. Its role is defined in section 7803(a) of Title 26 of the United States Code (U.S.C.). The IRC defines “Internal Revenue Service” as “the agency of the Treasury Department charged with the administration of this title” (the Internal Revenue Code), which is now defined as “the Bureau of Internal Revenue, Department of the Treasury.”
The agency originated as the Commissioner of Internal Revenue, created in 1862, who was responsible for collecting federal taxes from custom houses. Today’s IRS is primarily based on this later organization. Despite popular belief, the Bureau of Internal Revenue was not renamed “Internal Revenue Service” until 1924.
When agents are examining returns or performing investigations/audits at businesses and organizations (or other tax-exempt entities), they refer to such officials by their title: Special Agent – Federal Tax or Criminal Investigation Division Special Agent – CID for short.
The U.S. President appoints the seven-member Commissioner of Internal Revenue and directs him or her to administer the IRC according to its legislative intent and Congress’ will; Advises executive agencies regarding administrative policies, procedures, and interpretation of tax laws; Recommends changes in the IRC to the U.S. Congress; Provides administrative guidance for agents conducting audits or investigations; Directs the sale of seized assets under the Asset Forfeiture Program
Important Update on COVID-19
In response to COVID-19, IRS shopping hours can vary, or maybe the spot can be currently closed as a consequence of quarantine limits. Check out the specifics of delivery choices on the local website of IRS.
IRS tweaked their shopping hours to permit employees a little extra time to clean as well as resupply goods on racks. Added to that, numerous IRS locations have recently set up distinct shopping hours for members of the at-chance class.
What time does IRS open?
Monday | 08:00 AM – 05:00 PM |
Tuesday | 08:00 AM – 05:00 PM |
Wednesday | 08:00 AM – 05:00 PM |
Thursday | 08:00 AM – 05:00 PM |
Friday | 08:00 AM – 05:00 PM |
Saturday | closed |
Sunday | closed |
Is IRS open on weekends? – No, it is closed as any other government establishment.
What are IRS hours for today? – You may examine our tables and if you need a certain store – look for it on the official webpage.
Is IRS open tomorrow? – IRS works on weekdays and on some holidays.
What time does IRS close?– You can find out by checking the table above, usually, it is 5 pm.
IRS foundation history
In 1862 Abraham Lincoln and the Congress of the United States created the office of Commissioner of Internal Revenue in order to create, staff, and run a tax system to help pay for war expenses. The Secretary of the Treasury was made boss but ran the organization without day-to-day oversight; he relied heavily on his top aide, Chief Clerk of the Bureau of Internal Revenue John F. Daingerfield.
The 1865 assassination of President Lincoln put Vice President Andrew Johnson in charge while he stayed Vice President; he gave Secretary William P. Fessenden (a Maine Senator) control over budget and personnel decisions, but found him meddling too much in department administration; Fessenden quit after four months.
With nearly all Republicans have joined the Democratic Party by 1869, the party went looking for a man of their own to run the Bureau. Although he had been a “Democrat for years”, Treasury Secretary Alexander T. Stewart convinced his fellow New Yorkers that Benjamin Franklin Butler was really one of them, and they should support him as Commissioner.
He was confirmed by the Senate on May 24, 1869, by a vote of 31 to 7; those who voted against him were seven former Confederates and three Republicans (one New York and two Ohio).
The duties of the Bureau were then expanded: The secretary no longer ran it; The Bureau was authorized to conduct audits without prior permission from Washington; Collection districts were established in localities throughout the United States; Collection agents could now report directly to headquarters in Washington rather than to the local Secretary; and Collection of taxes on distilled spirits, tobacco, and snuff was authorized.
This law also repealed taxes on property: livestock; personal effects (except furniture); products made from gold, silver, or platinum; household goods such as crockery and cutlery; lamps and chandeliers; musical instruments; jewelry (except pearls); furs; books and tools used by professionals. It also repealed taxes on transfers of stock, all of which had been created in 1862. All remaining internal revenue taxes were repealed in 1870. This tax reform did not apply to imported goods, however.
In the 1900s IRS was made an independent department, still under the Treasury Department. It was renamed IRS to emphasize the fact that it no longer collected taxes: in 1913 Congress forbade this and by 1927, Internal Revenue ceased to be a part of the Bureau of Internal Revenue (which was abolished) and became its own bureau within the Treasury Department; in 1952, when Treasury became separate from Post Office, it gained its independence and was placed in the Executive Branch under President Harry Truman.
In the late 1960s, Richard Nixon called for its independence. Congress approved this in the Tax Reform Act of 1969, and the IRS became an independent service within the Department of Treasury.
IRS Holiday Hours – Open
DATE | HOLIDAY |
---|---|
January 21 | Martin Luther King Jr. Day |
February 18 | President’s Day |
April 19 | Good Friday |
May 5 | Cinco de Mayo |
May 27 | Memorial Day |
July 04 | Independence Day |
September 02 | Labor Day |
October 14 | Columbus Day |
December 24 | Christmas Eve |
December 31 | New Year’s Eve |
January 01 | New Year’s Day |
November 28 | Thanksgiving Day |
December 25 | Christmas Day |
IRS government agencies locations
There are four IRS offices in Portland, the state’s largest city; there are also four offices in Salem, Bend, Eugene and Medford. All of these locations service their own local counties (Washington County serves Washington County; Marion County serves Marion County; etc.), but they also serve multiple smaller cities and areas within their jurisdiction.
IRS near me
IRS mission
To provide America’s taxpayers top-quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all.
Programs that are unique to each of us, include Social Security, Medicare, unemployment insurance, food stamps, Medicaid (health care for low-income folks), welfare (TANF), and many others.
The IRS is responsible for collecting payroll taxes that finance these programs; it also pays out billions in refundable credits like the Earned Income Tax Credit (EITC). Other duties include processing income tax returns (forms 1040, 1120, etc.) on behalf of corporations; enforcing compliance with Federal tax law.
IRS committee – what all those people do?
- Commissioner – it is a person who runs the IRS, appointed by the president. They are accountable to congress. There are many commissioners, but one is designated as chief.
- Deputy Commissioner – they do all of the day-to-day runnings of the IRS and they answer directly to the commissioner.
- Associate Chief Counsel – their jobs are to advise people in the agency with legal questions in particular areas of tax law; also known as “Tax Policy” or “Legislative” counsel.
- Area Director – each office has an area director who is responsible for overseeing all activities in his/her territory (they make sure things run smoothly).
- Assistant Area Directors – these get involved with audits and appeals.
- Tax Examining & Collection – these people handle tax returns and collections for individuals, businesses, etc.. They only collect money that has been assessed (determined to be owed).
This is not the same as making sure that taxes are paid on time; they do not send out bills or make phone calls for late payments. If you owe back taxes, it will be sent to you in a bill with instructions about how much to pay and when. The IRS does not report your information to credit bureaus if you are paying them off. - Chief Counsel – this position advises all branches of the agency including appeals officers on legal issues related to taxation.
- Headquarters Commissioner Office – there are three divisions in this office:
- Corporate Tax – this division makes sure that corporations are moving within the bounds of the law. They issue guidance on how to comply with tax laws, and they conduct research into areas of taxation that need improvement.
- Small Business/Self-Employed (SB/SE) – this area is responsible for making sure that small businesses and people who are self-employed are complying with tax laws; they also act as liaisons between businesses and other divisions in the IRS, like wage & investment (W&I).
- Field Collection (FC) – this division manages all aspects of collections, including audits; it also acts as a liaison between taxpayers and SB/SE employees regarding questions about compliance issues or accounts that must be adjusted.
IRS for business and self-employed
EIN stands for Employer Identification Number, it is a number that the IRS issues to businesses. If you have employees, they will use this number to report income information under your business’ name. You need an EIN before you can hire any employees or open up a bank account in your business’ name.
You can apply for an EIN online at the IRS gov site. It only takes about 15 minutes and costs nothing. Once you get it, you can use it right away; there’s no waiting period like when applying for a credit card or something similar. When filling out your application, make sure that all of your personal information (SSN, home address, etc.) matches exactly with what the IRS has on file.
IRS for corporations
The corporation files income tax return – form 1120; if their taxable income was $50,000 or more (for at least one year) then they will also need to file a form 1120-A (an information return). Corporations always file taxes based on the fiscal year (a calendar year); but since they don’t issue W2s, they can choose to use one of 4 accounting methods: cash, accrual, modified accrual, and inventories.
Tax exemption for corporations in the U.S.; in order for a corporation to have its profit or loss taxed at different rates than individuals it must be an “eligible entity”
Federal tax filing for corporations with revenue of $5 million or less can file Form 1120-F (the form is the same but the process is different; check this site for details)
Corporations with gross receipts of more than $10,000,000 must file electronically via EFW2 and pay any taxes owed using EFTPS (electronic funds transfer).
Indian Tribal Governments
IRS provides tax services to federally recognized tribal governments in the U.S. and its territories -these groups can apply for an EIN online just like any other entity. They file taxes on the same forms and use the same methods as federal or state entities, but instead of “profit or loss” they use “total income”.
It offers services in the following languages: Arabic, Chinese, Korean, Vietnamese, and Spanish.
IRS for non-profit organizations
Non-profits are not taxed, but they must file either form 990 (every year) or 990EZ (annually). They do not have to pay taxes on any donations that they receive (contributions or gifts).
However, if they make money selling products like T-shirts, hats, etc. then all income is taxable. Non-profits can also apply for an EIN online just like any other entity; this number will be used on the tax forms that they file with the IRS.
IRS for individuals (U.S.)
- Types of income – there are two types of taxable income that individuals can have which are “earned” and “unearned”.
- IRS government agency – in 2010 the IRS became an independent agency in the U.S. government.
- Types of taxes for individuals – in addition to federal income tax, you will need to file state tax if your state has one (you must pay this even if you don’t live or work in that state) or local tax (if there is any). If you are a resident of New York City then you will also need to pay city tax. The states usually use your federal adjusted gross income as a starting point when calculating state taxes; they then add or subtract certain amounts depending on what sort of deductions/credits/exemptions you have claimed.
- IRS accepts electronic filings – individuals can file their taxes online using Form 1040EZ or Form 1040. If you are self-employed then you must use either Schedule C or Schedule SE to report your earnings/losses; there’s no way around it (even if it means spending 45 minutes adding up all of your expenses).
Once you’ve selected the form, make sure that the taxable income amount matches your total income minus all exemptions/deductions/credits that apply to you (i.e.- what is left over after all deductions). You can then list all of your deductions/credits and the amount that they add up to on lines 48-53. - Deductions are either “above the line” or “below the line”.
Above the line – these are used when you calculate taxable income (line 43), but they do not apply when calculating adjusted gross income (line 37). Here are some examples: IRA contributions, alimony paid, student loan interest etc. If you have two sources of income then you might be able to use them for both salaries/wages; see Publication 505 for more information about deductions that fall into this category.
Below the line – these are used in order to calculate your adjusted gross income (line 37). Here are some examples: moving expenses, health insurance premiums while unemployed, etc.
If you want to take out all of your deductions/credits and add them up yourself then it would probably be easier if you use the Taxcaster tool.
- Education credits – there are two options available for students who want to lower their tax bill by claiming educational expenses (they might even qualify for a refund): American Opportunity Credit – can only claim $2,500 per student; however any unclaimed amount can be transferred to another person or used within 5 years after the end of the year that the credit was claimed (i.e.- 2014) Lifetime Learning Credit – this is basically like an IRA contribution but instead of giving money to a retirement account, you’re giving it to a school. You can claim 20% of the first $10,000 that you spend on qualified education expenses for post-secondary education.
- Child tax credit – now just called an “additional child tax credit” since it’s been expanded to those who don’t have children and/or don’t qualify under the “qualifying child” category (i.e.- your sibling can be claimed as a dependent but they still might not qualify because their income is too high etc). The amount is refundable; however this means that it will actually reduce your negative federal income tax balance (amount you owe) by up to 15% of earned income (wages/salary), up to $3,000.
- Where to mail your tax return – you must send it either to the IRS service center located in Austin, TX (if you’re using Form 1040) or the one located in Philadelphia, PA (if you’re using Form 1040A or 1040EZ).
Charities and Nonprofits in IRS
There are a few rules that apply to non-profit organizations, charities, and churches:
If an organization has applied for tax-exempt status then it is automatically considered a 501(c)(3) organization, however, they cannot start receiving donations until they have been granted 501(c)(3) status by the IRS.
Any church or religious organization can be given tax-exempt status even if it’s not a registered non-profit (i.e.- a church with a bank account – as long as they’re using the money strictly for the purpose of worship).
In order for any charitable cause to be considered valid, it must meet certain requirements: It must benefit the public interest, it cannot exclusively give to a certain individual or family (i.e.- donating to a scholarship fund for high school seniors), it must be “charitable” (not like a dollar store – something that would typically benefit the public; if someone buys a plate of cookies and sells them for $50 then they’re not exactly helping anyone but themselves, etc).
Donations:
- Donations: Monetary donations (including stock), property, and services given to an IRS 501(c)(3) organization can all be deducted from one’s federal tax bill. This includes all religious organizations as well since anything considered “unlawful” cannot receive any type of deduction/credit.
- A donation cannot be used to pay back loans or debts owed by the taxpayer.
- Donations cannot be made in exchange for some type of service or product.
- You cannot deduct donations that you made to your child, parent, grandparent etc.
FAQ
Is the IRS backed up on refunds 2022?
As of September 23, 2022, we had 6.2 million unprocessed individual returns received this year. These include tax year 2021 returns and late filed prior year returns. Of these, 1.6 million returns require error correction or other special handling, and 4.6 million are paper returns waiting to be reviewed and processed.
When can I expect my refund 2022?
Overall, the IRS anticipates most taxpayers will receive their refund within 21 days of when they file electronically if they choose direct deposit and there are no issues with their tax return. The IRS urges taxpayers and tax professionals to file electronically.
Why am I getting a letter from the IRS 2022?
The IRS sends notices and letters for the following reasons: You have a balance due. You are due a larger or smaller refund. We have a question about your tax return.
How long does it take the IRS to approve your refund?
The IRS issues more than 9 out of 10 refunds in less than 21 days. However, it’s possible your tax return may require additional review and take longer.
How long does it take for IRS to approve refund after it is accepted 2022?
How quickly will I get my refund? (updated July 7, 2022) We issue most refunds in less than 21 calendar days. However, if you filed on paper and are expecting a refund, it could take six months or more to process your return.
Why is my refund still processing?
Reasons Your Tax Refund Can Be Delayed
Missing information. A need for additional review. Possible identity theft or tax fraud. A claim for an earned income tax credit or an additional child tax credit.
What time does IRS send direct deposit refunds?
Normally they sent to your bank between 12am and 1am. That does not mean it will go directly into your bank account. You bank can take up to 5 days to deposit it but normally it only takes a few hours.
Why does it say your tax return is still being processed a refund date will be provided when available?
The literal meaning of a refund date will be provided when available is that your tax return is still getting processed. A tax return still getting processed indicates that IRS has probably found any issue or they want to get additional information from you to continue your process of return.
What notices are the IRS sending out?
The IRS mails letters or notices to taxpayers for a variety of reasons including:
- They have a balance due.
- They are due a larger or smaller refund.
- The agency has a question about their tax return.
- They need to verify identity.
- The agency needs additional information.
- The agency changed their tax return.
How does the IRS notify you of an audit?
Remember, you will be contacted initially by mail. The IRS will provide all contact information and instructions in the letter you will receive. If we conduct your audit by mail, our letter will request additional information about certain items shown on the tax return such as income, expenses, and itemized deductions.
What is going on with the IRS 2022?
2022 tax filing season begins Jan. 24; IRS outlines refund timing and what to expect in advance of April 18 tax deadline. IR-2022-08, January 10, 2022 — The IRS announced that the nation’s tax season will start on Monday, January 24, 2022, when the tax agency will begin accepting and processing 2021 tax year returns.
Why is my refund still processing 2022?
The good news is that the IRS has made progress on its processing of returns, in part because it went on a hiring spree and shifted current personnel from other areas to assist with the backlog. Agency statistics from 2021 and 2022 demonstrate the forward movement made by the IRS.
Why is my 2022 refund taking so long?
If you filed weeks ago and still haven’t received your return, there could be several reasons why you’re experiencing a delay. The most common causes for tax refund delays include simple math errors, inaccurate or missing information and missing signatures or attachments.
Should I call the IRS if my refund is still being processed?
If it has been over 21 days since your return was being accepted by the IRS (or 6 weeks if you filed a paper return) and the tax refund status has not changed or WMR has no updated message for delays, you can call the IRS and speak with an agent concerning your tax refund.
How do I know if my tax return is received by IRS?
Tracking the status of a tax refund is easy with the Where’s My Refund? tool. It’s available anytime on IRS.gov or through the IRS2Go App. Taxpayers can start checking their refund status within 24 hours after an e-filed return is received.
Does the IRS count weekends as Processing days 2022?
The IRS works weekends during tax season, so it’s 21 days, not “business days”. However, if you mail your tax return, your 21 days of processing starts when the IRS gets your actual paper documents into the system. As such, paper returns take up to 12 weeks or more to process.
Does IRS Pay on Saturday?
The government never processes refunds on Saturdays or Sundays, or federal holidays. However your bank might receive the funds on Friday and make them available on Saturday.