JACKSONVILLE, Fla. — Under the Inflation Reduction Act that recently passed the Senate, Uncle Sam could have 87,000 additional employees over the next decade. Commissioner Charles Rettig said the agency has been planning its investment of enforcement resources and it is designed around the Department of the Treasury’s directive audit.
Marshall Gunn, Jr., a certified public accountant, said the IRS would go after households that make more than $400,000.
“Like many parts of the economy, they’re shorthanded and under funded,” Gunn said. “For your average tax payer who follows the rules, it’s a non-event. A non-issue.”
Some lawmakers don’t believe it is a non-issue. They believe adding more agents will target small business owners and the middle class. The IRS commissioner said otherwise in a letter to the Senate.
“The IRS has fewer front-line, experienced examiners in the field than at any time since World War II, and fewer employees than any time since the 1970s,” Rettig wrote in his letter.
The IRS could see nearly $80 billion in funding and roughly half, $45.6 billion, would be used for “enforcement”. Reports show the investment is projected to bring in $203.7 billion in revenue from 2022 to 2031.
“Keep good records, deduct what you’re entitled to deduct and move on,” Gunn suggested.
While the legislation still has to be approved by the House and signed into law, it would take time to phase in funding and hire new workers.