What is the primary duty of the Internal Revenue Service (IRS)?

The primary duty of the Internal Revenue Service (IRS) is to enforce federal tax laws and regulations. This involves a range of responsibilities, including collecting taxes, processing tax returns, providing guidance to taxpayers on compliance, and enforcing tax laws through audits and assessments when necessary. The IRS plays a crucial role in ensuring that the nation’s tax system operates fairly and effectively, which is essential for funding government operations and services.

This duty does not extend to creating new tax laws, which is a function of Congress. Additionally, the IRS does not prepare financial statements for companies, as that is typically the responsibility of the companies themselves and their accountants. Furthermore, while the IRS may evaluate certain aspects related to tax assessments, it does not determine asset values for public companies, which is generally the role of financial analysts and appraisers in the context of fair value measurements and other financial reporting requirements. Thus, the focus of the IRS on enforcing existing laws and regulations solidifies its primary role in the realm of taxation.