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Internal Revenue Service

Meaning

The Internal Revenue Service (IRS) is the United States federal government agency responsible for the collection of taxes and the enforcement of the Internal Revenue Code. In the domain of health and wellness, the IRS’s relevance stems from its authority to define the tax-advantaged status of employee health benefits, such as Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs), and to set the regulatory parameters for tax-exempt wellness program incentives. Their rulings fundamentally shape the financial architecture of employer-provided health initiatives.