The importance of federal and state taxes has been the cause of many discussions throughout history. From the introduction of the first income tax in 1862 to present taxation, the government strives to maintain an effective and fair taxation for every income level. Tax laws and government agencies are continuality under scrutiny by the Federal government as well as taxpayers. In order to understand and comply with taxation laws the Federal government has established organizations to provide support to taxpayers and help to ensure that the taxpayer is complying with said laws.
The Bureau of Internal Revenue was first in 1862 in order to help fund the Civil War. Ten years later the income tax was repealed. In 1894, Congress revived the tax but after a ruling by the Supreme Court, the tax was found to be unconstitutional. Nineteen years later, the 19th Amendment was ratified and Congress was given the authority to enact an income tax. In the 1950’s, the Bureau of Internal Revenue was “reorganized to replace a patronage system with career, professional employees” (Internal Revenue Services, 2007) and renamed to the Internal Revenue Service.
“The Internal Revenue Service strives to maintain the fairest and most effective system of voluntary tax compliance in the world. The environment in which we operate is complex and constantly changing, and the IRS must change with it” (Internal Revenue Services, 2009). In doing so, the IRS has two main goals that it strives towards. The first one is to improve its service and to make voluntary compliance easier for all taxpayers. The IRS hopes to achieve this goal by making forms and applications easily accessible to all taxpayer via their website and local government offices. The second is to enforce the laws and to help ensure that all taxpayers meet their obligation to pay taxes.
One way that the IRS has changed a law to help enforce its other laws and ensure compliance is with the new tax whistleblower laws....