ABOUT THE IRS
The Internal Revenue Service
Understanding how the IRS is organized — and how to deal with it — can make all the difference when a tax issue arises.
The Internal Revenue Service is the federal agency responsible for administering and enforcing the U.S. tax laws. It collects more than $4 trillion each year and touches nearly every individual and business in the country. For most taxpayers, the IRS is the public face of an enormous and often confusing bureaucracy. Knowing how it is organized — and which part of it you are dealing with — can help you respond more effectively when a problem arises.
How the IRS Is Organized
The IRS is divided into operating divisions that focus on different categories of taxpayers, along with functional units that carry out specific tasks. The division and function handling your matter often shapes the right strategy.
Wage & Investment
Handles individual taxpayers who earn wages and investment income — the largest group of filers, and the division behind most automated notices and refund issues.
Small Business / Self-Employed
Serves self-employed individuals and small businesses. This division conducts many field audits and handles a large share of collection cases.
Large Business & International
Examines corporations, partnerships, and high-income taxpayers with complex or cross-border returns.
Tax Exempt & Government Entities
Oversees nonprofits, retirement plans, and government employers.
The Functions You Are Most Likely to Encounter
Examination (Audits)
The examination function reviews returns and proposes adjustments. Audits range from automated correspondence audits conducted entirely by mail to in-person field audits led by a revenue agent. How you respond at the audit stage often determines the outcome of the entire case.
Collection
When a balance is owed, the case moves to the collection function. The IRS has powerful tools — liens, levies, and wage garnishments — but taxpayers also have rights and options, including installment agreements, offers in compromise, and currently-not-collectible status.
The IRS Independent Office of Appeals
Appeals is a separate function whose job is to resolve disputes without litigation. Because Appeals weighs the “hazards of litigation,” it is frequently the best opportunity to reach a favorable settlement. Most controversies that are not resolved during an audit are settled at Appeals.
Criminal Investigation
IRS Criminal Investigation handles allegations of tax fraud and other financial crimes. Any contact from CI should be taken seriously and is a signal to involve a tax attorney immediately.
Dealing With the IRS in Dallas
The IRS maintains taxpayer assistance centers and examination offices that serve the Dallas–Fort Worth area, including offices in Dallas and Fort Worth. Whether you have received a notice, been selected for audit, or are facing collection action, you do not have to face the IRS alone. Having an experienced tax attorney communicate with the IRS on your behalf protects your rights, prevents costly missteps, and reduces the stress of the process.
Why Work With a Former IRS Attorney
Our firm is led by a former IRS attorney who understands the agency from the inside — how its divisions operate, how examiners and revenue officers build cases, and where there is room to negotiate. We use that knowledge to position your case for the best possible result, whether that means resolving an audit, settling a debt, or appealing an unfavorable determination.
Talk to a Dallas Tax Attorney
Schedule a free consultation. We will listen, ask the right questions, and tell you honestly how we can help.