Definition:
The IRS (Internal Revenue Service) is the United States federal agency responsible for enforcing tax laws and collecting federal taxes. It operates under the U.S. Department of the Treasury and plays a central role in processing tax returns, issuing taxpayer identification numbers, and overseeing tax compliance for individuals and businesses.
The IRS:
- Issues EINs (Employer Identification Numbers)
- Accepts and processes federal income tax returns (Forms 1040, 1120, 1065, etc.)
- Enforces tax laws for both U.S. citizens and non-resident aliens (NRAs)
- Handles international tax matters such as treaty benefits and foreign ownership disclosures (e.g., Form 5472)
For non-U.S. founders who form an LLC or C-Corp in the U.S., interaction with the IRS is essential especially when applying for an EIN, filing required forms, or staying in compliance with U.S. tax regulations.
Who is it for?
Every individual or business earning U.S.-source income resident or non-resident—is subject to IRS oversight and may have tax obligations managed through this agency.
