User:Ravensfire/Taxation in the United States/Tax administrations

=Tax administration= Taxes in the United States are administered by literally hundreds of tax authorities. At the Federal level there are three tax administrations. Alcohol, tobacco, and firearms taxes are administered by the Alcohol and Tobacco Tax and Trade Bureau (TTB). All other taxes on domestic activities are administered by the Internal Revenue Service (IRS). Taxes on imports (customs duties) are administered by U.S. Customs and Border Patrol. TTB and CBP are divisions within the Department of Justice. The IRS is a division within the U.S. Department of Treasury. Organization of state and local tax administrations varies widely. Every state maintains a tax administration. A few states administer some local taxes in whole or part. Most localities also maintain a tax administration or share one with neighboring localities.

Internal Revenue Service
The IRS administers all U.S. Federal taxation on domestic activities, except those taxes administered by TTB. IRS functions include:
 * Processing Federal tax returns (except TTB returns), including those for Social Security and other Federal payroll taxes
 * Providing assistance to taxpayers in completing tax returns
 * Collecting all taxes due related to such returns
 * Enforcement of tax laws through examination of returns and assessment of penalties
 * Providing an appeals mechanism for Federal tax disputes
 * Referring matters to the Justice Department for prosecution
 * Publishing information about U.S. Federal taxes, including forms, publications, and other materials
 * Providing written guidance in the form of rulings binding on the IRS for the public and for particular taxpayers

The IRS maintains several Service Centers at which tax returns are processed. Taxpayers generally file most types of tax returns by mail with these Service Centers or file electronically. The IRS also maintains a National Office in Washington, DC, and numerous local offices providing taxpayer services and administering tax examinations.

Examination
Tax returns filed with the IRS are subject to examination and adjustment, commonly called an IRS audit. Only a small percentage of returns (about 1% of individual returns in IRS FY 2008) are examined each year. The selection of returns uses a variety of methods based on IRS experiences. On examination, the IRS may request additional information from the taxpayer by mail, in person at IRS local offices, or at the business location of the taxpayer. The taxpayer is entitled to representation by an attorney, CPA, or enrolled agent, at the expense of the taxpayer, who may make representations to the IRS on behalf of the taxpayer. Taxpayers have certain rights in an audit. Upon conclusion of the audit, the IRS may accept the tax return as filed or propose adjustments to the return. The IRS may also assess [[IRS penalties|penalties] and interest. Generally, adjustments must be proposed within three years of the due date of the tax return.  Certain circumstances extend this time limit, including substantial understatement of income and fraud.  The taxpayer and the IRS may agree to allow the IRS additional time to conclude an audit.  If the IRS proposes adjustments, the taxpayer may agree to the adjustment, appeal within the IRS, or seek judicial determination of the tax.

Published and private rulings
In addition to enforcing tax laws, the IRS provides formal and informal guidance to taxpayers. While often referred to as IRS Regulations, the regulations under the Internal Revenue Code are issued by the Department of Treasury. IRS guidance consists of:
 * Revenue Rulings and Revenue Procedures, applicable to all taxpayers and published in the Internal Revenue Bulletin, which are binding on the IRS,
 * Private letter rulings on specific issues, applicable only to the taxpayer who applied for the ruling,
 * [ http://www.irs.gov/formspubs/article/0,,id=98171,00.html IRS Publications] providing informal instruction to the public on tax matters,
 * [ http://www.irs.gov/app/picklist/list/formsInstructions.html IRS forms and instructions],
 * A comprehensive web site, and
 * Informal (nonbinding) advice by telephone.

Alcohol and Tobacco Tax and Trade Bureau
The Alcohol and Tobacco Tax Trade Bureau (TTB), a division of the Department of the Treasury, enforces Federal excise tax laws related to alcohol, tobacco, and firearms. TTB is organized as six divisions, each with discrete functions:
 * Revenue Center: processes tax returns and issues permits, and related activities;
 * Risk Management: internally develops guidelines and monitors programs;
 * Tax Audit: verifies filing and payment of taxes;
 * Trade Investigations: investigating arm for non-tobacco items; and
 * Tobacco Enforcement Division: enforcement actions for tobacco; and
 * Advertising, Labeling and Formulation Division: implements various labeling and ingredient monitoring.

Criminal enforcement related to TTB is done by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, a division of the Justice Department.

Customs and Border Protection
U.S. Customs and Border Protection (CBP), an agency of the United States Department of Homeland Security, collects customs duties and regulates international trade. It has a workforce of over 58,000 employees covering over 300 official ports of entry to the United States. CBP has authority to seize and dispose of cargo in the case of certain violations of customs rules.

State administrations
Every state in the United States has its own tax administration, subject to the rules of that state's law and regulations. These are referred to in most states as the Department of Revenue or Department of Taxation. The powers of the state taxing authorities vary widely. Most enforce all state level taxes but not most local taxes. However, many states have unified state-level sales tax administration, including for local sales taxes.

State tax returns are filed with separately with those tax administrations, not with the Federal tax administrations. Each state has its own procedural rules, which vary widely.

Local administrations
Most localities within the United States administer most of their own taxes. In many cases, there are multiple local taxing jurisdictions with respect to a particular taxpayer or property. For property taxes, the taxing jurisdiction is typically represented by a tax assessor/collector whose offices are located at the taxing jurisdiction's facilities.