Chapter 12, Problem 1MCQ

Which of the following is a responsibility of a local office of the IRS?

1. Advising the Treasury Department on legislation
2. Intelligence operations
3. Appellate procedures
4. Developing IRS rules and regulations
5. None of the above

To determine

Introduction: The Internal Revenue Service (IRS) has a wide range of functions and responsibilities such as look after of administration of federal taxes, and to perform duties like estimating, determining, and collecting taxes in the form of revenue to the government, it also performs tax return audits and imposes penal provisions. It is the office within the revenue department. The task of the department is to provide the taxpayers with quality service by assisting them in proving knowledge content so the taxpayers understand their tax responsibility and pay taxes timely. It is important in maintaining and establishing tax laws.

To choose: The responsibility of a local office of IRS.

Answer to Problem 1MCQ

The option ‘e’ is correct.

Explanation of Solution

The explanation for correct answer: The IRS is responsible for the enactment of tax law provisions and to maintain its integrity and fairness, it keeps publishing knowledge content for the benefit of taxpayers for understanding on several issues and to comply with the tax laws and rules accordingly. The IRS has various operational offices established in the U.S. whereas headquarter is in Washington, D.C. where commissioners and several deputy commissioners including associate commissioners are seated. The responsibility of the commissioner is to set-up policy, monitor the workings of the organization, and stand in an advisory capacity in legislative issues of the treasury department. Commissioner also has responsibility for tax collection, tax return audits, appellate procedures, and intelligence operations.

So from the above, it is clear that the local office of IRS does not perform the activities given in the options. Therefore, the option ‘e’ is correct.

The explanation for incorrect answers: For option a: The duty to advise the treasury department of IRS is lying with the commissioner and not with any local office of IRS, as the IRS has various operational offices established in the U.S. whereas its headquarter is in Washington, D.C. where commissioners and several deputy commissioners including associate commissioners are seated. The responsibility of the commissioner is to set-up policy, monitor the workings of the organization, and stand in an advisory capacity in legislative issues of the treasury department. Commissioner also has responsibility for tax collection, tax return audits, appellate procedures, and intelligence operations.

Therefore, the option ‘a’ is incorrect.

For option b: The responsibility regarding intelligence operations lies with the commissioner and not with any local office of IRS, as the IRS has various operational offices established in the U.S. whereas its headquarter is in Washington, D.C. where commissioners and several deputy commissioners including associate commissioners are seated. The responsibility of the commissioner is to set-up policy, monitor the workings of the organization, and stand in an advisory capacity in legislative issues of the treasury department. Commissioner also has responsibility for tax collection, tax return audits, appellate procedures, and intelligence operations.

Therefore, option ‘b’ is incorrect.

For option c: The responsibility regarding appellate procedure lies with the commissioner and not with any local office of IRS, as the IRS has various operational offices established in the U.S. whereas its headquarter is in Washington, D.C. where commissioners and several deputy commissioners including associate commissioners are seated. The responsibility of the commissioner is to set-up policy, monitor the workings of the organization, and stand in an advisory capacity in legislative issues of the treasury department. Commissioner also has responsibility for tax collection, tax return audits, appellate procedures, and intelligence operations.

Therefore, the option ‘c’ is incorrect.

For option d: The responsibility to develop IRS rules and regulation lies with the commissioner and not with any local office of IRS, as the IRS has various operational offices established in the U.S. whereas its headquarter is in Washington, D.C. where commissioners and several deputy commissioners including associate commissioners are seated. The responsibility of the commissioner is to set-up policy, monitor the workings of the organization, and stand in an advisory capacity in legislative issues of the treasury department. Commissioner also has responsibility for tax collection, tax return audits, appellate procedures, and intelligence operations.

Therefore, the option ‘d’ is incorrect.