The Internal Revenue Service (IRS) is getting closer and closer to receiving the increased funds that its staff have been waiting for such a long time.
The Inflation Reduction Act proposed by Democrats would provide away almost $80 billion to the Internal Revenue Service (IRS) over ten years.
The comprehensive spending package was the subject of months of debate in the Senate before it was finally approved earlier this month.
The bill will now be put to a vote in the House of Representatives before it is delivered to Vice President Joe Biden for signature.
The financing would help support the work of the IRS, including but not limited to audits, and in turn is expected to result in more federal tax revenue, which will help balance the expense of the Democrats’ plan to decrease prescription medication costs and tackle climate change.
The Inflation Reduction Act could have the following effects on you:
IRS Commissioner Charles Rettig, along with the commissioner who came before him, has submitted a request to Congress for increased cash.
Over the previous decade, the budget for the organization has been reduced by more than 15%. As a direct consequence of this trend, both the number of staff members and the percentage of audits have been going down for years.
When the agency was unable to keep up with filings amid the COVID-19 outbreak, the agency’s troubles were even more obvious to taxpayers.
The Internal Revenue Service started the year with a backlog of 11 million unprocessed tax returns, so it is still trying to get caught up.
However, some Republicans are opposing the proposed increase in funding for the Internal Revenue Service (IRS), arguing that it would subject a greater number of middle-class Americans and small businesses to the burdensome and potentially financially devastating experience of undergoing a tax audit.
Democrats have stated numerous times that the goal is not to target the middle class, but rather to ensure that affluent tax cheats comply with the law. The Internal Revenue Service will decide how the money is spent in the end.
“It should not only be the goal to increase the number of audits, but also to improve the productivity of audits. You want the IRS to focus its auditing efforts on organizations and individuals who have actually failed to comply with tax laws “Janet Holtzblatt, a senior fellow at the Urban-Brookings Tax Policy Center, was quoted saying so.
How much money is the Internal Revenue Service going to get?
Read more:-
- Michelle Branch Net Worth: How Much Does She Earn in 2022?
- Make It Clear to Congresswoman Clark That You Oppose Adding 87,000 New Irs Agents.
- The Extended Filing Deadlines for Those Affected by the Storms and Floods in Missouri
In addition to the money that the IRS typically receives from Congress on an annual basis, the Inflation Reduction Act would provide the agency with an additional almost $80 billion over ten years.
The Internal Revenue Service was given close to $12.6 billion for the fiscal year 2022.
According to Holtzblatt, the newly allocated funds would lead to an increase in the IRS budget that is more than fifty per cent higher when adjusted for inflation.
Over the next decade, the $80 billion would be distributed among four distinct divisions of the IRS.
The Democrats in the House seem poised to prevail over the Republicans on climate and health care issues.
