IRS

Tax Administration Servicesirs-nbg.de

The Internal Revenue Service (IRS) is the U.S. federal tax collection agency, serving 164 million individual taxpayers annually through enforcement, refund processing, fraud prevention, and taxpayer assistance via digital, mobile, phone, and partner channels.

Company typePrivate
Founded1862
HeadquartersNürnberg, Germany
Headcount11–50
GTM typeB2C
OfferingServices

What IRS does

The Internal Revenue Service (IRS) is the bureau of the United States Department of the Treasury responsible for federal tax collection and enforcement, headquartered in Washington, D.C. Established in 1862 and reorganized into its modern structure in 1953, the agency operates on approximately $11.2 billion in congressional appropriations and serves the entire U.S. taxpayer base, processing an expected 164 million individual tax returns for the 2026 filing season. Its core functions include tax collection, refund issuance, audit selection, fraud prevention, and taxpayer assistance delivered through IRS.gov, the IRS2Go mobile app, phone hotlines, Free File partnerships, and VITA/TCE volunteer programs.

The IRS's technology stack centers on AI-driven tax processing and enforcement systems, with 129 deployed AI use cases covering anomaly detection, autonomous agents, process automation, and predictive analytics. Named proprietary systems include the Discriminant Function, Large Partnership Compliance Model, and Line Anomaly Recommender for audit selection, supported by voicebots handling 4.8 million taxpayer calls and chatbots managing 450,000 inquiries. The agency is modernizing information return processing through the Information Returns Intake System (IRIS), which replaces the legacy FIRE system starting in 2027. Identity verification is provided through ID.me, digital payments through Global Payments' Link2Gov/Pay1040.com platform, and AI agent capabilities through Salesforce's Agentforce deployment.

The IRS operates on a non-revenue, appropriation-funded model with no direct cost to taxpayers for core services. Customer segments span individual taxpayers (tipped workers, gig workers, crypto investors, high-income filers, identity theft victims) and business units (corporate taxpayers, biofuel producers). Under the current administration, the agency has undergone significant restructuring: a 27% workforce reduction from 102,101 to approximately 74,465 employees during 2025, discontinuation of the Direct File free filing program in November 2025, implementation of AI-driven audit selection in April 2026, and launch of new programs such as Trump Accounts savings vehicles under the One Big Beautiful Bill Act. Operational capacity has correspondingly declined, with audit completions down 39% and Criminal Investigation enforcement actions down 63% year-over-year.

IRS firmographics

Firmographics

Name: IRS
Legal name: Internal Revenue Service
Website: https://irs-nbg.de
Company type: Private
Founded year: 1862
Operating status: Operating
Headcount range: 11–50 employees
Short description: The Internal Revenue Service (IRS) is the U.S. federal tax collection agency, serving 164 million individual taxpayers annually through enforcement, refund processing, fraud prevention, and taxpayer assistance via digital, mobile, phone, and partner channels.
Ownership category
akta.pro rank

IRS industry classification

Industry

Product category: Tax Administration Services
NAICS: Public Finance Activities (921130), Executive, Legislative, and Other General Government Support (921)
akta.pro primary industry: Revenue Systems, E-Filing & Digital Tax Administration (BPAIADAO)
akta.pro secondary industries: Tax Return Filing, Processing & Assessment (BPAIADAC), Revenue Intelligence, Analytics & Risk Management (BPAIADAL), Taxpayer Registration, Identity & Account Management (BPAIADAB)

Keywords

Federal tax administration
Tax collection services
Audit selection systems
Fraud detection
Taxpayer assistance

Where IRS is headquartered

Location

Headquarters

HQ city: Nürnberg
HQ country: Germany
HQ region: Europe

Offices1 record

Markets served

IRS business model

Business model

GTM type: B2C
Offering type: Services
Cost components: Personnel, Technology or R&D, Operations, Infrastructure

Revenue model

Tax Collection Operations: The IRS operates on an $11.2 billion budget to collect federal taxes from U.S. taxpayers, enforce tax laws, and provide taxpayer services. The agency does not generate revenue but processes tax payments and issues refunds.

Go-to-market motion1 record

Distribution channels5 records

Marketing channels5 records

IRS product offering

Product offering

Core offering

The IRS is the U.S. federal tax collection agency that processes individual and business tax returns, collects federal taxes, enforces tax laws, issues refunds, and administers tax credits. It provides taxpayer services through IRS.gov, the IRS2Go mobile app, voicebots, chatbots, and free filing partnerships. The agency operates AI-driven audit selection, fraud detection systems, and the IRIS platform for information returns processing, processing approximately 164 million individual returns annually on an $11.2 billion budget.

Product overview

The IRS is the United States' federal tax collection agency, operating a complex ecosystem of tax administration systems and services. The agency processes over 160 million individual tax returns annually, issuing refunds and administering tax credits. Key systems include the IRIS platform for information returns processing (replacing the legacy FIRE system), identity verification services through ID.me, and digital payment processing via Global Payments. The IRS has implemented AI-driven systems for audit selection, fraud detection, and taxpayer service automation including voicebots and chatbots. Major recent changes include the shutdown of the Direct File free filing program and implementation of new tax provisions from the One Big Beautiful Bill Act.

Differentiator

Problem solved

Functional benefit

Brands

IRS Direct File: Free government tax-filing tool that completed a pilot in 2024 and was available in 25 states before being discontinued in November 2025.
IRIS (Information Returns Intake System)

Products and services

IRIS (Information Returns Intake System)
Identity Protection PIN (IP PIN)
Trump Accounts

Quantifiable outcome

$7 billion in fraudulent refunds stopped in 2024-2025
+3 more outcomes

Companies that use IRS

Customer profile

Named customers5 records

Segments8 records

Ideal customer profiles6 records

IRS technology and API

Technology

Technology focussed Yes

API detail

Has API: No
API docs
API detail

Core technology

AI maturity

App detail

Integration3 records

AI capability7 records

Feature6 records

IRS partnerships and signals

Strategic signal

Partnerships

Three partnerships are on record, tiered core.

ID.mecoreTechnology or Integration · 22 May 2026ID.me is the IRS's identity verification contractor, providing biometric identity services to help combat rising AI-enabled fraud. The IRS and Treasury are reviewing proposals that would allow ID.me to retain taxpayers' biometric data for longer periods to assist in investigations.
Global Payments Inc. (Link2Gov)coreTechnology or Integration · 17 March 2026Global Payments Inc. subsidiary Link2Gov secured a pivotal role as the IRS's chosen digital payments processor for the 2026 tax season, positioning Pay1040.com at the forefront of tax payment modernization. Stock surged 6.29% following the announcement.
Bank of AmericacoreStrategic or Co-development Partner · 9 March 2026Bank of America announced it will match the $1,000 federal government deposits for Trump Accounts, a new savings program created under the One Big Beautiful Bill Act for children born 2025-2028.

Scale indicators15 records

Recent moves6 records

Expansion highlights5 records

IRS competitors and assessment

Company assessment

Direct peers

HMRC (Her Majesty's Revenue and Customs): UK government tax authority that administers income tax, VAT, and PAYE/payroll for ~45M individuals. Closest international analogue to the IRS in scope, statutory mandate, digital modernization program (Making Tax Digital), and AI-enabled compliance functions.
Canada Revenue Agency (CRA): Canadian federal tax and benefits administrator handling income tax, GST/HST, and payroll for ~30M filers. Directly comparable mandate, self-service digital portal, and AI-driven risk scoring and audit selection programs.
Australian Taxation Office (ATO): Australian federal tax agency administering income tax, GST, and superannuation. Comparable role in digital-first service delivery, data-matching across banks and gig platforms, and AI-based fraud and audit analytics.

Broad incumbents

Intuit (TurboTax): Largest US commercial tax preparation platform and former Free File partner. Comparable in serving the same ~164M US individual filers, but operates as a paid software incumbent whose distribution became more important after the Direct File shutdown.
H&R Block: Major US tax preparation retailer offering DIY and assisted filing. Engages the same taxpayer base as the IRS through retail and digital channels, with growing overlap on AI-assisted filing experiences.
Thomson Reuters (ONESOURCE Tax): Provider of corporate tax compliance and indirect tax software used by large filers. Comparable on the corporate/complex return side where the IRS also operates Large Partnership Compliance models and 1099/1042-S intake (IRIS).
Wolters Kluwer Tax & Accounting: Provider of CCH tax and accounting software for professionals and corporations. Comparable on professional-grade tax compliance workflows serving the same taxpayer base as IRS corporate systems.

Others

Salesforce (Government Cloud / Agentforce): Cloud platform vendor that the IRS is deploying via Agentforce for AI agent-based taxpayer service. Adjacent technology provider whose adoption shapes IRS service delivery and AI integration patterns.
ID.me: Identity verification and biometric authentication contractor used by the IRS for taxpayer login and fraud prevention. Critical third-party dependency for IRS digital channels and identity theft protection (IP PIN).

Emerging players

FreeTaxUSA: Low-cost US tax preparation software ranked top by PCMag readers two years running and a current IRS Free File partner. Comparable taxpayer base and filing use cases, gaining share as Direct File is wound down.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights6 records

Customer concentration

IRS financial estimates

Financial estimate

Revenue estimate

Valuation estimate

IRS leadership team

Management profile

Number of profiles

Profiles2 records

IRS funding detail

Funding detail

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

IRS M&A and investment

M&A and investment

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about IRS

What does IRS do?

Is IRS a public or private company?

IRS is a private company. It is classified as state government owned and is currently operating.

When was IRS founded?

IRS was founded in 1862. It employs 11 to 50 people.

Where is IRS based?

IRS is headquartered in Nürnberg, Germany, in the Europe region.

How does IRS make money?

One revenue line is on record: tax Collection Operations.

Who are IRS's main competitors?

Direct peers on record are HMRC (Her Majesty's Revenue and Customs), Canada Revenue Agency (CRA) and Australian Taxation Office (ATO). Broad incumbents are Intuit (TurboTax), H&R Block, Thomson Reuters (ONESOURCE Tax) and Wolters Kluwer Tax & Accounting. Others are Salesforce (Government Cloud / Agentforce) and ID.me. FreeTaxUSA is listed as an emerging player.

Does IRS have an API?

No public API is recorded for IRS.

What industry is IRS in?

IRS's product category is Tax Administration Services. Its primary akta.pro industry code is BPAIADAO, Revenue Systems, E-Filing & Digital Tax Administration, with a secondary code of BPAIADAC, Tax Return Filing, Processing & Assessment. Its NAICS code is 921130.