The Internal Revenue Service (IRS) is the U.S. government agency responsible for collecting taxes and administering the federal tax laws enacted by Congress. Its origins trace back to 1862 during the Civil War, when President Abraham Lincoln created the position of Commissioner of Internal Revenue to fund war expenses. The 16th Amendment, ratified in 1913, granted Congress the authority to implement an income tax. The first tax rate was 1% on income above $3,000 and 6% for income exceeding $500,000. In the 1950s, the Bureau of Internal Revenue's name changed to the Internal Revenue Service.
The IRS is the world's largest accounting and tax-collection organization. During the 1920s, the IRS was tasked with enforcing Prohibition. The IRS offers whistleblower awards to individuals who provide information on those who fail to pay their taxes. If the amount owed exceeds $2 million, the whistleblower could receive 15 to 30 percent of the amount collected. In 2022, the IRS hired over 4,000 new customer service representatives. Taxpayers can access their individual account information, including balance, payments, and tax records, through the IRS website.
