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

When you get hired at a business, you fill out an I-9 form. That form tells your employer how much to take out for taxes. Part of the business(payroll) tax is paid by your taxes(as I understand) and if you paid too much you get some back. That is why your company sends you your W-2 not the federal government.