I.R.S. Unveils $80 Billion Plan to Overhaul Tax Collection [View all]
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
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
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