Final answer:
Option 3, the Treasury Department and the IRS, is correct for who administers and enforces Federal tax laws. The IRS handles tax collection, while the Treasury Department oversees management and enforcement of these laws, including appropriation of the collected revenue.
Step-by-step explanation:
The responsibility for administering the Federal tax laws rests with the Internal Revenue Service (IRS), and the Treasury Department is responsible for enforcing the tax laws. The correct answer to the student's question is option 3) Treasury Department, IRS. The IRS is an agency of the Treasury Department and is primarily responsible for collecting taxes and enforcement of tax laws. This role is critical in reducing tax evasion and ensuring that the government collects revenue needed for the welfare of the country.
When discussing federal income taxes, it is assessed on individual and corporate earnings, with individual income tax being a major source of federal government revenue. Other types of taxes include corporate income taxes and social insurance and retirement receipts. The main function of the IRS is to oversee the collection of taxes, while the Treasury Department is involved in the appropriation and management of the federal revenue collected, as well as enforcing the tax laws.
Politics can heavily influence tax laws. Taxation policies may change with different administrations, reflecting varying political agendas and economic strategies.