Official government or IRS announcements, federal budget approvals

IRS Seeks $20 Billion for Audits, Staff Expansion, Says Commissioner Werfel

May 3, 2024, 07:45 PM

IRS Commissioner Danny Werfel has announced that the agency requires an additional $20 billion in funding to continue its progress in improving customer service and increasing audit rates. This request comes after significant strides were made following a substantial budget increase allocated by Capitol Hill two years ago, which was aimed at addressing issues such as outdated technology, backlogged returns, and low audit rates. The IRS plans to triple audits for corporations with assets over $250 million, increase audits tenfold for partnerships with assets over $10 million, and boost audits by 50% for high-income earners with incomes exceeding $10 million. Additionally, the agency intends to hire 14,000 more employees to support these efforts. However, Werfel noted that the current funding for technology upgrades will run out by 2026. The funding increase was initially secured by Democrats through the Inflation Reduction Act to target wealthy tax cheats and improve IRS customer service.