Republicans are attacking the proposed increase in IRS funding, arguing that it would leave more middle-class Americans and small businesses with the headache of facing a tax audit.
By Katie Lobosco, CNN The Internal Revenue Service is finally about to get the additional funding its officials have long been waiting for.
The agency's struggles became even more apparent to taxpayers during the Covid-19 pandemic when it could not keep up with filings. The IRS is still playing catch-up, having started the year with a backlog of 11 million unprocessed tax returns.
Nearly $4.8 billion would be used for modernizing the agency's customer service technology, like developing a callback service.How many new auditors could be hired?The Republican National Committee and several Republican lawmakers have criticized the new IRS funding, claiming that it will provide the agency with an"army of 87,000 new IRS agents."
The Inflation Reduction Act does not instruct the IRS to hire a certain number of enforcement agents, and the agency would need to decide on staffing plans. The Congressional Budget Office expects increased collection to amount to roughly $203 billion over 10 years, raising net federal revenue by more than $124 billion during that time period when accounting for the nearly $80 billion that would be spent.
Who may be more likely to face an IRS audit?Selection for an audit doesn't always suggest there's a problem, according to the IRS. Sometimes returns are selected at random.
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