INTERNAL REVENUE HISTORY & KEY DIVISIONS
This article is being written to explain a brief history of the Internal Revenue Service (IRS) and a brief breakdown of key divisions.
History
The Department of the Treasury was established on September 2, 1789 and on July 1, 1862 the Office of the Commissioner of Internal Revenue was established as a bureau of the Department of the Treasury.
On February 25, 1913 congress granted authority to levy taxes on corporate and individual income, and on January 5, 1914 the first Form 1040 was published.
On July 9, 1953 the “Bureau of Internal Revenue” was officially re-organized as the “Internal Revenue Service”
In current times, the IRS is one of seven bureaus operated by the Department of the Treasury.
Divisions
Within the IRS there are several divisions each with their own set of functions. Four main divisions of the IRS are the:
- Taxpayer Services (formerly Wage and Investment Division)
- Small Business/Self Employed
- Large Business and International
- Tax Exempt and Government Entities
Taxpayer Services division
The mission is:
“To provide Taxpayer Services customers top-quality service by helping them understand and comply with applicable tax laws and to protect the public interest by applying the tax law with integrity and fairness to all.”
The Taxpayer Services division consists of:
- Communications and Liaison (C&L)
- TS Operations Support (TSOS)
- Return Integrity and Compliance Services (RICS)
- Customer Assistance, Relationships and Education (CARE)
- Customer Account Services (CAS)
- Management Services (MS)
Small Business/Self Employed division
The mission is:
“Help small business and self-employed taxpayers understand and meet their tax obligations, while applying the tax law with integrity and fairness to all.”
For the portion of taxpayers who operate a small business or are self-employed, this division is the source of the majority of communications from the IRS.
Large Business and International division
The mission is:
“The Large Business and International (LB&I) Division is responsible for tax administration activities for domestic and foreign businesses with a United States tax reporting requirement and assets equal to or exceeding $10 million as well as the Global High Wealth and International Individual Compliance programs.”
This division is organized into 2 areas:
- Support
- Practice
For those taxpayers who meet the $10 million threshold or are involved in foreign matters this division may be the source for communications from the IRS.
Tax Exempt and Government Entities division
The mission is:
“Our mission is to provide our customers top quality service by helping you understand and comply with applicable tax laws and to protect the public interest by applying the tax law with integrity and fairness to all.”
This division is responsible for the communication regarding employee plans (Pensions, 401Ks, etc…), non profit organizations (501c3, etc…), and government entities.
Written by: Abraham Brosig CPA, May 27, 2026
Disclaimer: The articles and insights in this journal are intended for general informational and educational purposes only. They do not constitute professional tax, legal, or accounting advice. Because individual tax situations vary and laws are subject to change, readers are strongly encouraged to consult with a licensed tax advisor or CPA in their specific jurisdiction before acting on any information contained herein.
Sources:
https://www.irs.gov/irs-history-timeline
https://www.irs.gov/irm/part1/irm_01-001-013
https://www.irs.gov/about-irs/small-business-self-employed-division-at-a-glance
https://www.irs.gov/about-irs/large-business-and-international-division-at-a-glance
https://www.irs.gov/about-irs/tax-exempt-government-entities-division-at-a-glance