IRS Gushing Over New Services After Big Funding Splash

(UnitedHeadlines.com) – Democrats pinned big hopes on the passage of the Inflation Reduction Act of 2022, which included funds to modernize the Internal Revenue Service (IRS). The tax season for 2022 has begun, and the IRS is ready to put its huge splash of new funding to good use.

Deputy Secretary of the Treasury Wally Adeyemo shared a press release on January 23 offering details on the agency’s changes. The IRS is gushing over many new or improved services, including tax code enforcement, which thousands of new hires are ready to provide.

From @TreasuryDepSec on the first day of tax filing season >>

Taxpayers Will See Improved Service This Filing Season Thanks to Inflation Reduction Act https://t.co/vlEFFWxqxq

— Lily Adams (@adamslily) January 23, 2023

The Inflation Reduction Act of 2022 became public law on August 16, 2022, after passing with a one-vote majority. Congress brought forth the legislation because members felt the IRS had been grossly understaffed, making navigating tax season a nightmare for many Americans. Limited workers also prevented the agency from pursuing audits from high earners, who typically take more time and effort to investigate.

One of the agency’s most significant changes this year was hiring 5,000 new representatives to answer telephone calls and assist taxpayers with their questions and concerns. Callers can now choose between using the IRS’ automated system or speaking with actual human beings. Additionally, about 650 new employees are working in 361 physical assistance centers across the country. Representatives can answer questions about tax codes and help with other issues. They can be a vital resource for low-income earners who might not have the funds to hire accountants. Roughly 100 locations will also have office hours on Saturdays when the average worker has time to visit.

The IRS’ most significant new asset is the additional workforce it has brought in to go after wealthy tax evaders. According to Adeyemo, the top 1% fail to pay about $160 billion annually — or about 30% of all unpaid taxes. The agency assures the public that its added resources won’t increase the rate of audits “relative to historic levels” for people who earn less than $400,000 annually.