The IRS says its 87,000 new hires
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The IRS says its 87,000 new hires could help collect as much as $1 trillion — by forcing tax cheats to pay up. But will more 'fire-breathing dragons' really do the trick?
Get ready, ultra-wealthy Americans: President Joe Temp Mail Biden wants you to start paying your share.
Through the Inflation Reduction Act, Biden plans to increase funding for the IRS to help the agency catch sneaky tax evaders — especially those high-earners who love to find loopholes around the law.
A Treasury Department report from May 2021 estimates the extra money would allow the agency to hire around 87,000 new employees — which could include revenue agents and customer service and IT staff — by 2031.
Advocates believe the increased funding could raise as much as $1 trillion by forcing tax cheats to pay their dues, especially after years of budget cuts have gutted the system.
However some critics worry the increased scrutiny on taxpayers could backfire in a big way.
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The IRS desperately needs the support
The $80 billion in funding spread over the next 10 years will help the IRS modernize its infrastructure, increase enforcement and replace its aging workforce (50,000 of the IRS’s 80,000 workers are expected to leave in the next five years).
The agency has reportedly been underfunded by about 20% for a decade — leading it to cut back on both staff and technology updates.
Bogged down by a processing system that’s more than half a century old and a backlog that includes millions of unprocessed paper filings, the IRS has been in need of more resources and support for a while.
The customer service department has been woefully short-staffed as well. During the 2022 filing season, the IRS received around 73 million phone calls from taxpayers — but only 10% were actually answered.
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