A report went out that the IRS had been poised for an extended budget of $80 billion for the Inflation Reduction Act reconciliation bill that potentially will add 87,000 agents to the roster and enable an audit of ordinary citizens of less than $75,000 income in a blitz to uncover discrepancies.
The newly added revenue to the department is rumored to give the IRS more field agents to hamper down on those who have unpaid income claims that will recover more for the government revenue estimated to be bring in $203.7 billion, threatening enforcement to target everyday citizens.
Despite the hysteria, the IRS has denied these charges. IRS Commissioner Charles Rettig said these resources are “absolutely not about increasing audit scrutiny on small businesses or middle-income Americans,” but in new specialized enforcement staff, modernizing antiquated information technology, and investing in meaningful taxpayer service—including the implementation of the newly expanded credits aimed at providing support to American families. The budget is claimed mainly for infrastructure of the system, not for additional agents targeted at citizens according to the agency.
While the IRS ensuring that 87,000 new agents was not their intent, their own 24-page report indicates an intent for increase in workforce of the agency. They do admit the need for hiring 20,000 to 30,000 new employees. Reports defending the IRS claim that rumor of 87,000 hired agents was upon the calculations that the increase COULD allow for that many additional agents, but denied that amount of new hires was not allotted for that purpose.We should be relieved they only intend 30,000 new employees. Makes us feel better.
If anything, they claim the enforcement would only be applied against those with the highest incomes, and audit rates will not rise relative to recent years for those earning less than $400,000 in actual income in their claim. In other words they defend their effort will not concentrate on small business and citizens, but big business. However, it doesn’t make sense that new agents will be put on big business accounts to monitor, so something does not add up.
We are led to believe the increase in funds to the department intend to go towards better technology, new access to better serve citizens to ask questions, and simply to make the agency more efficient than it is to enforce the targeted claims of those under $400,000? But doesn’t this increase in efficiency that may allow better monitoring of citizens that WILL LEAD TO MORE RED FLAGS TO TRIGGER AUDITS? They never admit suspicions, so we cannot expect any admission from them, only sidesteps, redirections, and spin.
Social Media has also sided with the denial and are penalizing posts (censoring) for containing such material.
Sources:
https://www.dailysignal.com/2022/08/12/the-irs-and-its-allies-downplay-87000-person-hiring-binge/