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Department of the Treasury/IRS

The Department of the Treasury and the Internal Revenue Service (IRS) are essential to managing the U.S. government’s financial and tax systems. The Treasury is responsible for formulating economic policy, managing national debt, and overseeing federal spending. The IRS, as part of the Treasury, administers and enforces tax laws.

1. Department of the Treasury

  • Jurisdiction: The Treasury manages the government's finances, issues currency, and manages federal debt. It also oversees financial institutions and enforces economic policies.
  • Example: In response to the 2008 financial crisis, the Treasury Department played a key role in implementing the Troubled Asset Relief Program (TARP), which helped stabilize banks and the broader economy.

2. Internal Revenue Service (IRS)

  • Jurisdiction: The IRS is responsible for collecting federal taxes, enforcing tax laws, and ensuring compliance. It handles individual income tax filings, audits, and business tax matters.
  • Example: In 2017, the IRS was responsible for implementing changes from the Tax Cuts and Jobs Act, adjusting tax brackets and corporate tax rates. They also handled the distribution of Economic Impact Payments (stimulus checks) during the COVID-19 pandemic in 2020.

Key Functions of the IRS

  • Tax Collection and Audits: The IRS collects income, payroll, and other taxes from individuals and businesses. It also audits tax returns to ensure accuracy.
  • Taxpayer Assistance: The IRS provides support for taxpayers, offering online tools to file returns and track refunds.

In summary, the Department of the Treasury oversees the nation’s finances and economic policies, while the IRS ensures tax compliance and collects revenue to fund government operations. Their combined efforts maintain the stability of the U.S. economy.

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