Which organization collects taxes and has enforcement powers?

Prepare for the NAFTrack Accounting Test. Use flashcards and multiple choice questions, each question includes hints and explanations. Gear up for your exam today!

Multiple Choice

Which organization collects taxes and has enforcement powers?

Explanation:
The main idea is identifying who actually collects federal taxes and enforces tax laws. The Internal Revenue Service fits this role. The IRS administers tax laws, processes tax filings, collects revenue, and has enforcement tools such as audits, penalties, liens, and, in serious cases, criminal investigations done in coordination with the Department of Justice. The other options relate to accounting standards or securities regulation rather than tax collection, so they don’t perform tax collection or enforcement in the same way.

The main idea is identifying who actually collects federal taxes and enforces tax laws. The Internal Revenue Service fits this role. The IRS administers tax laws, processes tax filings, collects revenue, and has enforcement tools such as audits, penalties, liens, and, in serious cases, criminal investigations done in coordination with the Department of Justice. The other options relate to accounting standards or securities regulation rather than tax collection, so they don’t perform tax collection or enforcement in the same way.

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