INFLATION REDUCTION ACT TO BOLSTER IRS

INFLATION REDUCTION ACT TO BOLSTER IRS

Inflation reduction act to bolster IRS. It was a campaign promise of Joe Biden's, pay for these programs thru increased IRS enforcement. This was due to the fact the agency had been underfunded for years, and had additional responsibilities, including administering the stimulus checks, fighting tax refund fraud and identity theft fraud, and the oldest computer system in the entire United States Government. Through the passage of the Inflation Reduction Act, the Biden Administration plans to dramatically increase IRS funding to help catch the tax evaders, who it is estimated are costing the government nearly $1 trillion in annual tax revenue. Given the needs of the military, Social Security and Medicare needing a bailout as well, having those extra funds is essential to our nation. The fact that a large percentage is from high income earners is also a political divide, as the majority of Americans believe the rich should pay their fair share. Inflation reduction act to bolster IRS.

"The combination of more than 21 million unprocessed paper tax returns, more than 14 million math error notices, eight month backlogs in processing taxpayer correspondence, and extraordinary difficulty reaching the IRS by phone made this filing season particularly challenging", National Advocate Erin Collins wrote in her midyear Congressional report. On top of those issues, former IRS Commissioner Charles Rettig estimated in 2021 that the agency is losing $1 trillion in unpaid taxes each year--particularly due to evasion by the rich and big businesses. Rettig has long sought increased funding to go after the rich and big business, as they are the prime tax evaders. Adding nearly 87,000 additional IRS personnel will allow the agency to do just that. The number of IRS Audits is going to go up substantially as a result.

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