Internal Revenue Service (IRS)

The U.S. federal agency responsible for collecting taxes and enforcing tax laws. The IRS administers tax regulations, processes tax returns, conducts audits, and provides tax-related guidance to individuals and organizations.

For example, when a business reports $5 million in taxable income, the IRS reviews the tax return, processes tax payments, and may conduct audits to verify compliance. The agency also provides guidance on tax law interpretation and handles disputes through established procedures.

Managing IRS relationships requires understanding tax regulations, maintaining proper documentation, and ensuring timely compliance. Organizations must stay current with tax law changes while preparing for potential audits.