$80 Billion IRS Funding Boost Doesn’t Help Taxpayers

(DailyDig.com) – On March 16, a prominent IRS unit that works to benefit taxpayers said that the $79.6 billion budget increase in the Inflation Reduction Act (IRA) by the Democrats concentrates excessively on compliance and audits and does little to benefit U.S. taxpayers. The IRS’s Office of Taxpayer Advocate issued that statement.

Just $3.2 billion of the approximately $80 billion was allotted to the Taxpayer Services component, which will assist the IRS in providing more dependable service and answering queries by phone. According to the research, the costs associated with IRS enforcement amounted to an astounding $45.6 billion, which represented 90% of the overall budget. More funding in the amount of $4.8 billion was also made available to bring mission-critical technologies used by the agency up to date.

Erin Collins, an advocate, claims in the report that the Internal Revenue Service’s (IRA) method of disbursing the funds “does not address the needs” of American taxpayers. There are several types of taxpayers, such as families and individuals, as well as businesses.

Collins continued to say that, following the difficulties of recent years, the IRS’ BSM accounts and the Taxpayer Services require greater cash if they are to enhance taxpayer services, which is the IRS’ top priority at the moment. The Internal Revenue Service (IRS) must, secondly, find a happy medium between helping taxpayers and strictly complying with the law.

According to the analysis from the Taxpayer Advocate Service (TAS), the IRS has, for decades, been underfunded, making it unable to recruit additional employees or modernize its equipment, which has resulted in service delays of many months. President Biden, in August 2022, signed IRA, the IRS funding act, into law, which significantly increased the IRS’s budget during the following decade so that it may recruit more agents and expand its operations, services, and buildings.

Collins said that American taxpayers should have access to tax authorities that treat them with dignity and respect, are fair to everyone, and does not make life too difficult for small companies and families. It is urgent to give US taxpayers trust in our nation’s tax system.