What You Need to Know
- The IRS is ill-equipped to assist with basic tax filing needs and crack down on wealthy tax cheats, the senators said.
- They asked for minimum 14% increase in annual IRS funding, and an $80 billion investment in the IRS over 10 years.
- The agency’s FY 2021 budget was $2.7 billion less than its FY 2010 budget.
Sens. Elizabeth Warren. D-Mass., and Jeff Merkley, D-Ore., told Treasury Secretary Janet Yellen Thursday in a letter that persistent underfunding of the Internal Revenue Service will have negative consequences for taxpayers and pressed for a minimum 14% increase in annual IRS funding, and an $80 billion investment in the IRS over 10 years.
“Years of underinvestment in the IRS, compounded by pandemic-related challenges, have left the agency ill-equipped to assist Americans with basic tax filing needs and crack down on wealthy tax cheats,” the senators wrote.
The senators cite a recent report that many IRS services could be impaired because of budget constraints and pandemic-related issues.
“Your department has warned of a ‘frustrating season’ for taxpayers, including processing and refund delays and issues with other taxpayer services on which millions of Americans rely,” the senators wrote.
“These risks come as no surprise after over a decade-long gutting of the IRS budget, which has prevented the agency both from taking action against wealthy tax cheats and providing adequate assistance to the majority of Americans trying to honestly file their taxes,” they added.