Florida Business and Finance Practice Exam

The primary function of the Internal Revenue Service (IRS) is the collection of federal taxes. This role is essential for ensuring the government's revenue stream, which funds various programs and services essential to the functioning of the federal government. The IRS is responsible for administering and enforcing tax laws established by Congress and processes millions of tax returns every year, ensuring compliance through audits and investigations when necessary.

The IRS also provides guidance and resources to help taxpayers understand their obligations and assist in the correct filing of their taxes. This function is critical since taxes collected by the IRS are used to finance government operations, infrastructure, and social services, among other public expenditures.

While oversight of banking, regulation of insurance, and implementation of trade tariffs involve aspects of financial governance, they are under the jurisdiction of different agencies or bodies. The IRS specifically focuses on tax collection and enforcement, distinguishing it from those other functions.