The extra IRS funds revealed in the Inflation Reduction Act will intensify audits on America’s wealthiest taxpayers.
Over the next ten years, the Internal Income Service (IRS) hopes to generate an additional $100 billion in income. It intends to accomplish this by strengthening auditing levels to verify that taxpayers are not concealing funds from the federal government. Poorer Americans understandably worry about prying eyes into their finances, while ignoring the country’s
Taxpayers To Be Audited By IRS
The funding comes from the Democrats’ broad Inflation Reduction Act, which was enacted along party lines last year and is intended to help the agency crack down on tax evaders and provide better service to taxpayers.
Republicans, on the other hand, have been wary of sending so much money to the IRS, and they are suspicious that the investment will not result in greater audits of industrious Americans. A bill was passed earlier this year in the Republican-controlled House that would repeal much of the increased spending, but it has no chance of becoming law.
Officials in the Biden administration have frequently stated that people earning less than $400,000 per year will not face a tax hike as a result of the extra financing, however, it is unclear how the IRS can enforce this.
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IRS Increases Staff
The IRS will hire more employees, but the IRS’s new commissioner, Danny Werfel, did not specify how many auditors will be hired as a result of the increased funds.
For some time, the agency’s staff has been declining. The IRS, with approximately 80,000 full-time employees, is nearly 20% smaller than it was in 2010, according to Werfel. Simultaneously, the US population has risen, necessitating the implementation of numerous key tax code revisions by the IRS.
Some Republican leaders have claimed that the $80 billion in new funds will be used to recruit 87,000 auditors who will target hardworking Americans.
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