A Bit of History

• The origins of the IRS go back to the Civil War when President Lincoln and Congress, in 1862, created the Commissioner of Internal Revenue and enacted an income tax to pay war expenses.


• The states ratified the 16th Amendment in 1913, which gave Congress the authority to enact an income tax. The standard Form 1040 used to report income first appeared that year.


• The agency went through a major reorganization in the 1950s. The existing name, Bureau of Internal Revenue, was changed at that time to the Internal Revenue Service to emphasize service to taxpayers.


• The most comprehensive reorganization and modernization of IRS in nearly half a century was prompted by the Restructuring and Reform Act of 1998

Four Major Divisions

• Wage and Investment: This division serves several million taxpayers each year who file individual and joint tax returns. It provides educational material and assistance to taxpayers in understanding and satisfying their tax responsibilities.


• Small Business and Self-Employed: This division serves millions of small businesses and self-employed taxpayers. It also provides educational services and informs small businesses and self-employed taxpayers of their tax obligations helping them understand and comply with applicable laws.


• Large and Mid-Size Business: This division serves corporations, subchapter S corporations, and partnerships with assets greater than $10 million. This division assists large and mid-size business in dealing with complicated issues involving tax law and accounting principles.


• Tax-Exempt and Government Entities: This division serves employee benefit plans, tax-exempt organizations, such as charities and social welfare groups, and governmental entities.