Question

The IRS, as an administrative agency, is responsible for:

a. formulating and interpreting the tax laws
b. interpreting and enforcing the tax laws
c. formulating and evaluating the tax laws
d. planning and formulating the tax laws

Answer 1

The IRS is an administrative agency responsible for interpreting and enforcing the tax laws, not formulating them. This role includes issuing regulations to implement legislative tax policies and working to ensure compliance with tax obligations.

Step-by-step explanation:

The Internal Revenue Service (IRS) is an administrative agency that falls under the umbrella of the Executive branch of government, where it is tasked with interpreting and enforcing the tax laws. While they can issue rules or regulations that help implement legislation, they do not formulate tax laws as this is the role of the legislative branch, particularly Congress, which creates tax policies based on various social and economic goals. The enforcement and interpretation of these laws by the IRS are essential to reducing tax evasion and ensuring that the tax system operates effectively.