IRS Creation

Tax AdministrationInstitution1862
RegionUSA
Year1862
TypeTax Administration
CategoryInstitution

About IRS Creation

The Internal Revenue Service was created in 1862 as the Office of the Commissioner of Internal Revenue to collect the first federal income tax during the Civil War. When the income tax was reinstated in 1913, the Bureau of Internal Revenue was reestablished. The agency was renamed the Internal Revenue Service in 1953. The IRS collects over 4 trillion annually in federal taxes, funding approximately 96 percent of federal revenue. The IRS has approximately 75,000 employees. The agency has been criticized for poor customer service, long wait times, and outdated technology. The Inflation Reduction Act of 2022 provided 80 billion in additional IRS funding over 10 years. The funding has been partially clawed back by subsequent legislation.

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