IRS Hasn’t Finalized How Middle Class Will Be Affected by $80 Billion in New Funding

A report by the Internal Revenue Service released last week indicated that officials are devoting much of the agency’s recent funding windfall toward audits even as the degree to which the actions will impact everyday taxpayers remains uncertain.

President Joe Biden’s Inflation Reduction Act Recently, $80 billion was approved for the tax enforcement agency. Treasury Secretary Janet Yellen It was previously stated that the funding would enable staff members upgrade information technology systems. more easily assist Individuals and small businesses who want to file taxes; report However, the Treasury Inspector General of Tax Administration stated that they have not yet determined how the actions made possible by the funds will affect audit rates for taxpayers with middle income.

Inflation Reduction Act allocated $45.6 billion to enforcement activities that will empower the agents. “determine and collect taxes owed.” To help taxpayers, $3.2 billion will go to “filing and account services, pre-filing assistance, and education,” While $4.8 million will be used to modernize business systems, “can be invested” Customer service technology

The agency’s budget for enforcement activity will therefore increase 69% over the next decade, while the budget for taxpayer services will increase 9%. The rest of the funding will be used to pay rent, facilities, and telecommuting costs.

Yellen had previously pledged that the new resources won’t be used to increase audit rates in American households earning less $400,000 per annum “relative to historical levels.” She failed This is to clarify. “historical levels” Enforcement was much higher in the past decade: Audit rates for Americans with incomes between $25,000-$200,000 decreased 76% between 2010 & 2019, according to data From the Government Accountability Office.

The Treasury Inspector General of Tax Administration also revealed that IRS officials were included in this document. “have not yet finalized what constituted the $400,000 income level or what historic audit level will be used for its metrics,” These matters can also be indicated as “still being discussed between the IRS and the Treasury Department.” The agency still believes that there isn’t “an immediate risk” Violation of the commitment “employee attrition and hiring challenges will limit its ability to conduct more audits.”

The Daily Wire was provided with an analysis of the House Ways and Means Committee document. It concluded that “when they have the numbers, they’ll perform the audits.”

“At a time when Americans are facing the double threat of sky-high inflation and an economy in recession, top bureaucrats at the IRS are huddling over how to spend their $80 billion windfall, and what technicalities they can use to justify auditing families and small businesses,” Jason Smith (R,MO) is the chairman of Ways and Means Committee. This statement was sent to The Daily Wire. “President Biden and Secretary Yellen need to come clean with the American public about the true extent of their enforcement plans and exactly how many middle-class families will be swept up in their audit scheme. The American people are already dealing with 40-year high inflation; the last thing they need is a visit from the IRS.”

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