Final answer:
The federal agency responsible for collecting and monitoring income tax is the Internal Revenue Service (IRS). They collect various types of taxes and play a crucial role in enforcing compliance with tax laws.
Step-by-step explanation:
The federal agency that collects and monitors income tax is known as the Internal Revenue Service (IRS). It is responsible for ensuring that individuals and businesses comply with the tax laws and regulations set by the federal government.
The IRS collects taxes such as individual income taxes, corporate income taxes, and social insurance and retirement receipts. The personal income tax is the largest single source of federal government revenue.
To reduce tax evasion, the US government would need to devote additional resources to monitoring and enforcement efforts to ensure that everyone pays the taxes they owe.