I.R.S. Unveils $80 Billion Plan to Overhaul Tax Collection

[BumRushDaShow]

Source: New York Times

WASHINGTON — The Internal Revenue Service on Thursday unveiled an $80 billion plan to transform itself into a “digital first” tax collector focused on customer service, laying the groundwork for an ambitious overhaul of one of the most scrutinized arms of the federal government. The long-awaited road map is a centerpiece of President Biden’s economic agenda, which aims to narrow the nation’s $7 trillion of uncollected tax revenue and use the funds to combat climate change, curb prescription drug prices and pay for other initiatives prized by Democrats.

The infusion of funds into the I.R.S. was included in the Inflation Reduction Act, the sweeping climate and energy legislation that Democrats pushed through last year. Efforts to bolster the agency have drawn strong opposition from Republicans, who have long accused the I.R.S. of improperly targeting them.

The report released Thursday, which was requested by Treasury Secretary Janet L. Yellen, offers new details about how the I.R.S. intends to use the additional funding over the next decade. The Biden administration has been focused on highlighting improved taxpayer service and responsiveness, but the report indicates that more than half the money will be dedicated to cracking down on big companies and wealthy individuals that evade taxes.

In a memorandum to Ms. Yellen that accompanied the report, Daniel I. Werfel, the new I.R.S. commissioner, said he would focus new enforcement resources on “hiring the accountants, attorneys, and data scientists needed to pursue high-income and high-wealth individuals, complex partnerships and large corporations that are not paying the taxes they owe.”

Read more: https://www.nytimes.com/2023/04/06/business/economy/irs-tax-treasury.html

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IRS news release about the plan - https://www.irs.gov/newsroom/irs-unveils-strategic-operating-plan-ambitious-effort-details-a-decade-of-change

Link to IRS strategic plan page - https://www.irs.gov/about-irs/irs-inflation-reduction-act-strategic-operating-plan

Strategic plan (PDF) - https://www.irs.gov/pub/irs-pdf/p3744.pdf

[Fiendish Thingy]

1. Start with the top earners, and work your way down. Nt

[Martin68]

2. There is so much irony in the GOP constantly whining about debt while they do their utmost to

impede the best source of government funding.

[truthisfreedom]

3. pwn the 'pukes!

Weaponize the IRS against the financial enemies of America! Make America Solvent Again!

[moreland01]

4. Elizabeth Warren was right (as always).

The IRS should send every taxpayer a postcard/letter showing what they owe, or are owed. They have all of the W2s, INT, DIV forms, etc. They know dang well what I owe or what I'm owed, without me having to figure out a tax form. And if I want to dispute it, or file something extra because I think I'm owed another deduction, that's on me to do.

[FakeNoose]

7. Well a post card would broadcast it to everyone, it should be sent in a privacy envelope

But yes, it should be sent to every tax-paying American.

[TexasBushwhacker]

9. Everyone doesn't get a W2

And people who get W2s from their own S-Corp can cheat like crazy on their business taxes. The same goes with partnerships, and even C Corps. A person with just W2 income and investment income that's reported on a 1099 doesn't have many ways to cheat.

[Miguelito Loveless]

5. Eliminate the need for most Americans to file a return

Most taxpayers can be processed by sending out a letter at the end of the year stating "Here are your earning from your W-2. Here is how much tax you paid. Here is how much you will get back/need to pay. If this is correct, do nothing and a check will be sent/a bill will be issued. If you disagree, return the enclosed post paid card and we will be in touch."

Stop subsidizing Turbo Tax and the accounting industry on the backs of the poor and lower middle class.

[Igel]

6. No, no they don't.

I claimed my kid as dependent this year.

Last year my ex-wife claimed him.

I have a stack of forms from an investment place that says that the information was not reported to the IRA.

I get a teacher's deduction. I have to keep records for that, but they don't keep track of it.

In fact, that's a good thing--I don't want people knowing everything about me. You can't be pro-privacy as a liberty and pro full provision of all financial data to the government, apparently as a liberty.

"Just let me know what the bill is and I'll send you a check. Those that can't be bothered to actually do their returns can just pay or accept the return. But those that do bother to check will have the same time commitment and expense to check that the IRS is correct--with the problem being that if the postcard doesn't arrive then it would appear that you've acceded to their declaration and have little choice but to abide by the negative opt-in.

I don't like negative opt-in.

Perhaps it can be conditional on positive opt-in.

[marybourg]

8. I sold a house to a family member.

My spouse died a few years ago and the basis for the house was re-set. I upgraded the house. The government doesn’t know what I sold it for or what my basis is.

[TexasBushwhacker]

10. TurboTax is free for 1040 returns.

So is Taxact and other DIY tax software. They make their money from state returns, small businesses and people who file a Schedule C.