What is the role of the IRS related to employee income?

The correct answer reflects the primary responsibility of the Internal Revenue Service (IRS), which is to administer federal tax laws. This involves ensuring that individuals and entities comply with tax regulations, collecting federal income taxes from employees' wages, and facilitating the processing of tax returns. The IRS sets guidelines for how income should be reported and taxed, which is fundamental to the functioning of the federal revenue system.

The other options relate to various governmental functions but do not fall under the IRS's purview. Overseeing real estate transactions is typically managed by state or local agencies rather than the IRS. Collecting property taxes is also a responsibility of local governments rather than the federal tax authority. Lastly, managing social security funds is under the jurisdiction of the Social Security Administration, not the IRS. Thus, the unique role of the IRS in administering and enforcing federal tax laws makes this option the most accurate.