eli5: How exactly does the IRS collect money from everyone (i.e, individuals, families, small businesses, charities, enterprises, institutions, corporations, as well as colleges and universities)

Question

It’s no surprise that every single thing that is alive, can move, and more importantly, *that makes money, more specifically,* ***in America***, gets taxed, by the government.

This includes income tax, sales tax, corporate tax, property tax, capital gains tax, and more.

But my primary inquiry is how does the IRS collect funds from everyone?

Do they get wire transfers from 250M people all over the country, for different tax filings?

And what kind of bank account does the IRS have and use for their transactions?

In: 1

Answer 1

In addition to what everyone said above, when you do your taxes every spring, you will be notified if you owe money (for example my husband is self-employed, so he doesn’t have an employer to withold money from his pay checks) and then you pay it like a regular bill (online or with a check).