IRS announces spending plan for $80B funding boost, targeting tax collection overhaul and increased audit rates for the wealthy.
The IRS has unveiled its spending plan for the $80 billion funding boost, which includes hiring thousands of new workers to audit wealthy Americans and big corporations, modernizing technology, improving customer service, and cracking down on the tax gap. The agency plans to hire nearly 30,000 new employees by the end of fiscal year 2025, including 8,782 hires in enforcement and 13,883 in taxpayer services. The funding boost was included in the Democrats' Inflation Reduction Act, aimed at improving tax compliance among big corporations and wealthy Americans and shrinking the estimated $600 billion tax gap. The IRS plan repeatedly states that it will comply with Treasury Secretary Janet Yellen's order to not increase audit rates for Americans who earn less than $400,000 a year.