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September 16, 2022 at 10:06 AM
What You Need to Know
- The effects of the IRS' $80 billion budget boost should be noticeable by next filing season, Yellen said.
Treasury Secretary Janet Yellen highlighted the Biden administration’s plans for boosting the Internal Revenue Service, including efforts to dramatically increase the capacity of in-person and call-in support services, and to ramp up audits of top earners.
Congress approved $80 billion in new funding for the tax-collection agency in legislation passed in August, clearing the way for big upgrades in technology, taxpayer services and enforcement that would concentrate on the wealthy and corporations.
The new money will “transform the IRS into a 21st century agency,” Yellen said in remarks prepared for delivery during a visit to an IRS facility just outside Washington. “While all the improvements won’t be done overnight, taxpayers can expect to feel real differences during the next filing season.”
Yellen also highlighted plans to increase audits of top earners to help reduce an amount of unpaid taxes that’s “grown to enormous levels.” In 2019, the top 1% of earners were estimated to owe over a fifth of the so-called tax gap, amounting to around $160 billion, she said.
“High earners are paying far less than they owe,” she said. “This means that working families are shouldering a disproportionate burden of investing in our roads, schools, military, and more.”
