Although we all hate taxes, we could not run the country without them! Taxes are one of the few ways a government stays stable, makes money, and keeps the money circulating.
The Internal Revenue Service (IRS) is a department of the government that specializes in the enforcement of tax laws. The IRS is crucial for America to run well and independently. The IRS is needed to fund education, healthcare, construction, and the Military. Without taxation, the government would not have the resources to afford projects and support the residents. Medicaid and other insurances would not be impossible to have in place if the IRS did not exist.
How did the IRS even start?
In the beginning of America’s history, a part of Congress was first solely in charge of collecting taxes. According to the IRS Timeline On September 2, 1789, Congress implemented the “Department of the Treasury”and elected the popular at the time, Alexander Hamilton, as the first ever Secretary of the Department. Early in our country’s history, taxes were seen as too harsh by many people and a group of whiskey distillers being threatened of being arrested for not paying a whiskey tax was the last straw for many, sparking the Whiskey Rebellion. After the War of 1812, multiple taxes were implemented to recover from the war, creating the first ever income tax (The agency, its Mission and Statutory Authority). This first income tax was led to the Commissioner of Internal Revenue which was the predecessor of the IRS. The post War of 1812 taxes were later repealed. Later, during the Civil war, on July 1, 1862, President Abraham Lincoln signed the second revenue measure of the Civil War, which levied internal taxes and established a permanent internal tax system (IRS at work - history of the IRS). Soon after, Congress officially created the Office of the Commissioner of Internal Revenue under the Department of the Treasury and George S. Boutwell became the head of office, which officially made the IRS a part of the Department of Treasury and of America.
Filing Taxes is challenging, time consuming, and boring!
Although we can’t run from taxes, we can facilitate the process of filing them. However, if the idea of not filing taxes being illegal is not enough to influence a citizen, The IRS is a bureau of the Department of the Treasury and one of the world's most efficient tax administrators. In fiscal year 2023, the IRS collected almost $4.7 trillion in revenue and processed more than 271.5 million tax returns. In FY 2023, the IRS closed 582,944 tax return audits, resulting in $31.9 billion in recommended additional tax. (The agency, its mission and Statutory Authority)
The IRS will give back a portion of a taxpayer’s money back, called a “tax return;” therefore, not all the money an individual is filing will be lost. If a person wants their tax filing to run as smoothly as possible, they should start early, to have plenty of time to fix any bumps and errors that they may encounter, along with keeping all documents and receipts organized for possible deductions. Persons can also check for any programs they could potentially qualify for for deductions. Filing electronically is usually preferred over going in person since it saves time and money. But all this takes time, and some people do not have time, so if a person has no time, or simply really doesn't like doing taxes, they can hire someone to do the filing for them!
Despite the process of filing taxes is painful to go through, the IRS works well and efficiently, and is at the end of the day, to the benefit of taxpayers.
The history of the IRS, taxes, and how to file them are important to understand so that people can be good citizens. A knowledge of taxes and the taxation process leads to individuals feeling more inclined to stay informed about their country, avoid legal issues, and contribute to the Country that they live in. By learning how taxes work, people can be more involved in their government, and will start to advocate for policies and regulations that will benefit their beliefs and citizens as a whole. Citizens can help keep a functioning home and government by staying informed on their role in society.
P.S: That's Alexander Hamilton!