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IRS Commissioner Danny Werfel Unveils Plan for Spending $80 Billion in Funding to Improve Taxpayer Service and Crack Down on Tax Cheats.

Image courtesy of media.cnn.com

Key takeaways:

  • The Internal Revenue Service (IRS) released its plan to spend $80 billion in funding over the next decade.
  • The funding is meant to support the agency in cracking down on tax cheats and providing better service to taxpayers.
  • The agency is expected to use the money to improve customer service, update outdated technology, and hire additional staff to help with enforcement and compliance.

The Internal Revenue Service (IRS) released its highly anticipated plan for spending $80 billion in funding over the next decade on Thursday, with Commissioner Danny Werfel attempting to reassure average taxpayers that they don’t need to worry about an increase in audits.

The funding comes from Democrats’ sweeping Inflation Reduction Act, which passed along party lines last year and is meant to support the agency in cracking down on tax cheats and providing better service to taxpayers. Werfel said the new money would help the IRS “move toward a world-class customer service operation” and that small business owners, workers with regular wage income and retirees have nothing to fear from increased tax enforcement targeting higher earners.

Werfel said it was too soon to say whether the IRS would eventually hire the 87,000 employees that have become a fixture of Republican talking points about the supposed “weaponization” of government against everyday Americans. However, the IRS is expected to collect more than $100 billion in new revenue over a 10-year period as a result of the improvements.

The IRS has been under increased scrutiny in recent years, with the agency facing criticism from both sides of the aisle. Democrats have accused the agency of not doing enough to crack down on wealthy tax cheats, while Republicans have accused the agency of targeting conservative groups.

The new funding is meant to help the IRS address both of these issues, while also providing better service to taxpayers. The agency is expected to use the money to improve customer service, update outdated technology, and hire additional staff to help with enforcement and compliance.

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