The Internal Revenue Service (IRS) is the federal agency that collects federal taxes, runs return processing, and enforces tax compliance, including for immigrants and international taxpayers with cross-border income or assets.
While many people encounter the IRS only at filing time, the agency’s internal structure shapes what happens next: which unit processes a return, who issues a notice, how an audit is assigned, and where a taxpayer can go for help. For visa holders, immigrant entrepreneurs, and foreign taxpayers, those pathways can also affect how tax records appear during visa, green card, or naturalization steps that ask for proof of compliance.
Where the IRS sits in government (and what it does)
- Congress writes tax laws.
- The U.S. Department of the Treasury interprets and administers those laws.
- The Internal Revenue Service (IRS), a bureau within Treasury, carries out the day-to-day work: collecting revenue, issuing refunds, and enforcing compliance.
Federal taxes are separate from state and local taxes. For example, California administers state income tax through the California Franchise Tax Board. Information sharing between federal and state systems is common, so a federal change or audit can sometimes lead to a state inquiry.
IRS divisions at a glance (and why immigrants should care)
The IRS organizes much of its work around taxpayer categories. That matters because the division that “owns” a case often determines the style of audit, the documents requested, and the topics emphasized (payroll, international reporting, or small-business receipts). Below is a summary of major divisions and their implications for immigrant and international taxpayers.
Table 1: IRS divisions and their primary taxpayer focus
| Division | Primary Taxpayer Type | Key Responsibilities | Notes on Immigrant/International Impact |
|---|---|---|---|
| Wage and Investment (W&I) (functions integrated under Chief Taxpayer Services) | Individual filers, wage earners, retirees | Form 1040 processing, refunds, withholding, credits such as Child Tax Credit | Common for new immigrants filing first returns, ITIN filers, and refund delays that can affect immigration document needs |
| Small Business / Self-Employed (SB/SE) | Small businesses and self-employed (assets under $10M) | Business and payroll compliance, self-employment tax, audits, outreach | Frequent for immigrant entrepreneurs, freelancers, and visa holders running side businesses; payroll errors can create records issues later |
| Large Business and International (LB&I) | Large corporations, multinationals, high-net-worth, international taxpayers | Transfer pricing, cross-border transactions, international enforcement, FATCA compliance | Central for foreign income and foreign asset reporting themes that can surface during immigration vetting |
| Tax Exempt and Government Entities (TE/GE) | Nonprofits, charities, pension plans, government entities | Exempt status oversight, retirement plan compliance, government entity tax issues | Relevant for immigrants working at nonprofits or managing cross-border charitable activity with U.S. reporting needs |
Who leads the IRS (and what changed in the org chart)
As of November 2025, Scott K. Bessent (Acting Commissioner) leads the IRS, with the Deputy Commissioner position vacant. The Commissioner oversees collection, enforcement, taxpayer services, and internal operations but does not write tax law.
A notable organizational change took effect on April 8, 2024: the IRS adopted a streamlined structure with a single Deputy Commissioner over four chief executive positions. That structure was later reflected in a July 10, 2025 update to the Internal Revenue Manual. The goal was a clearer split between compliance, operations, taxpayer services, and technology.
Four senior roles that shape case flow:
– Chief Tax Compliance Officer — Jarod Koopman (acting): sets compliance direction and coordinates enforcement priorities.
– Chief Operating Officer — Dottie Romo: oversees operational support that keeps processing and enforcement running.
– Chief Taxpayer Services — Kenneth Corbin: oversees major service and return-processing functions, including W&I work.
– Chief Information Officer — Kaschit Pandya: runs IRS technology that supports return processing, matching, and case selection.
Legal interpretation and dispute channels:
– Office of Chief Counsel — provides legal advice and represents the government in tax litigation. Kenneth Kies (acting) is Chief Counsel and has a dual reporting relationship that includes Treasury General Counsel on tax policy and litigation.
– Independent Office of Appeals — John Hinding (acting) leads this neutral forum for resolving many disputes without court.
– Taxpayer Advocate Service (TAS) — led by National Taxpayer Advocate Erin M. Collins, helps taxpayers facing hardship, delays, or systemic problems.
Table 2 (Sidebar): Timeline of leadership and structural updates
| Date | Leadership/Policy Change | Implication for taxpayers |
|---|---|---|
| April 8, 2024 | Streamlined IRS leadership structure adopted | Service and compliance functions became more centralized under chief roles, affecting how work is routed and managed |
| December 20, 2024 | Leadership continuity shaped under the streamlined model | Day-to-day processing and enforcement coordination relied more on chief roles that oversee case flow and systems |
| July 10, 2025 | Internal Revenue Manual updated to reflect structure | Greater integration of compliance and taxpayer services procedures in IRS operating guidance |
| November 2025 | Scott K. Bessent (Acting Commissioner) leads IRS; Deputy Commissioner vacant | Top-level leadership context can affect agency priorities and initiative timing |
How IRS work happens in practice: from filing to enforcement
IRS actions are largely driven by automation and matching, with human review when discrepancies arise.
- Filing and processing
– Individuals file Form 1040. Businesses may file Form 1120 or Form 1065.
– Returns are processed electronically or by mail.
- Automated matching
– IRS systems compare taxpayer-reported amounts to third-party data such as W-2s and 1099s.
– Bank and employer reporting feed these systems.
- Notices
– If numbers do not align, the IRS may send a notice.
– Many cases close at this stage if the taxpayer responds with clarification or payment.
- Audits (examinations)
– If issues remain, the IRS may open an audit.
– SB/SE and LB&I conduct many audits, ranging from correspondence to field examinations.
- Collections and enforcement
– If tax remains unpaid, the IRS can offer payment plans.
– More serious actions include liens, levies, and refund offsets.
For immigrants and international taxpayers, the topic of the case matters as much as the amount. Cross-border reporting issues can move a matter toward LB&I, even when the taxpayer is an individual.
Cross-border reporting: where FBAR and FATCA fit
Two cross-border reporting systems commonly affect immigrant and international taxpayers:
- FATCA (Foreign Account Tax Compliance Act) — an IRS-related regime increasing reporting about foreign financial accounts and certain foreign assets through tax forms and third-party reporting.
- FBAR (Report of Foreign Bank and Financial Accounts) — a separate reporting requirement tied to foreign financial accounts. While FBAR is filed with the Treasury, many taxpayers associate it with IRS compliance since the IRS administers parts of the enforcement process.
These rules can apply to green card holders, individuals who meet U.S. tax residency tests, and in some cases certain visa holders (depending on days present in the U.S. and treaty positions). A tax professional typically assesses residency and reporting obligations using the Internal Revenue Code and any relevant tax treaty provisions.
⚠️ Important: Immigrant and international taxpayers should understand how FBAR/FATCA reporting and cross-border compliance can influence immigration-related processes.
How IRS records can intersect with visas, green cards, and naturalization
USCIS forms and consular processes often request tax returns, transcripts, or proof of income. The IRS does not decide immigration cases, but IRS compliance issues can affect how an immigration application appears on paper.
Common intersections:
– Tax residency determinations — A taxpayer may be a nonresident, resident, or dual-status for tax purposes. Filing position should match facts because immigration filings may rely on those records.
– Income consistency — Employment-based petitions, family sponsorship affidavits, and investor/entrepreneur cases often include income proof. Large mismatches between payroll records, W-2s/1099s, and filed returns can trigger follow-up questions.
– Foreign assets and foreign income — Accounts abroad can trigger FATCA or FBAR duties. Missing forms may lead to notices or enforcement.
– Business compliance — Immigrant entrepreneurs may face SB/SE issues around payroll taxes, worker classification, and self-employment tax. These records can matter when proving ongoing lawful activity tied to a visa.
Help inside the IRS: TAS, Appeals, Chief Counsel, and Criminal Investigation
The IRS offers internal channels for assistance and dispute resolution, though fast fixes are not always possible.
- Taxpayer Advocate Service (TAS) — assists when a taxpayer faces financial hardship or an IRS delay causing real harm.
- Independent Office of Appeals — often the main route to dispute an IRS determination without going to court.
- Office of Chief Counsel — shapes legal positions and litigation decisions, influencing how cross-border issues are pursued.
- Criminal Investigation (CI) — separate from civil audits; focuses on tax evasion, money laundering, financial crimes, and offshore tax fraud, and works with federal prosecutors when criminal charges are considered.
✅ Tips for immigrants:
– Verify filing status and ensure it matches factual circumstances.
– Understand which IRS division handles your case (W&I, SB/SE, LB&I, TE/GE).
– Consult the Taxpayer Advocate Service if facing delays or disputes that cause hardship.
Content discusses tax and immigration intersections; readers should consult qualified tax and immigration professionals for personal circumstances.
This article is informational and not a substitute for legal or tax advice.
The IRS oversees tax compliance through specialized divisions that impact immigrants differently based on their income sources. Key divisions include Wage and Investment for individual filers and LB&I for those with foreign assets. Because tax records are often required for immigration benefits, maintaining consistent and accurate filings is essential. The agency recently streamlined its leadership structure to improve operational efficiency across compliance and taxpayer services.
