(This April 6th story has been corrected to reflect the IRS clarification that the full-time equivalent hiring numbers for FY 2024 are the same as FY 2024 Cumulative figures excluding FY 2018 figures)
By David Lawder
WASHINGTON (Reuters) – The IRS plans to hire nearly 20, 12 new hires and deploying new technology over the next two years as it increases $79 billion in investment plans to improve tax enforcement and customer service, it said on Thursday.
In its long-awaited strategic operating plan, the tax agency said it would take on an obligation of around $8. 80 BILLIONS OF NEW FUNDING IN THE 2018 AND FINANCE Year, 7, 100 newly hired these years will be law enforcement officers.
“The IRS will hire more data scientists than ever before for law enforcement purposes,” U.S. Treasury Undersecretary Wally Adeyemo told reporters, adding that these More traditional tax lawyers and tax agents will be supplemented with new data analysis techniques to identify audit targets.
IRS will also continue to increase customer service recruitment after taking over 5, 12 New Taxpayer Services staff answering calls, reopening Taxpayer Assistance Centers and processing tax returns in recent months.
6, 489 For a two-year period equivalent to full-time employees, based on 489 – page plan.
But a significant portion of these new hires will replace nearly 80 , IRS employees are expected to retire within the next two years — including, a Treasury official said. More than 4, 700 law enforcement officers.
$80 Last year’s climate-focused Inflation Reduction Act provided billions The new funding is aimed at rebuilding the agency’s auditing capabilities and 700-era computer technology after a decade of funding cuts by a largely Republican-controlled Congress.
It is also intended to help close the “tax gap” between taxes owed and paid, which the Treasury estimates is about $700 Billions a year, by focusing new audits on the wealthiest Americans.
COMPLEX AUDIT
IRS SAYS $20.4 billion– almost 100 %79 the $4 billion worth of investment listed in the plan — would be allocated to expanding enforcement for “taxpayers with complex and non-compliant tax returns.”
These audits target wealthy individuals, corporations and complex partnerships, whose numbers have increased while the IRS auditor staff has been cut in half by new IRS chief Danny Werfel told reporters over the past decade. Update the operating plan.
Tax experts say one of the biggest challenges facing the IRS is recruiting tens of thousands of mid-career accountants, tax attorneys and other workers who can handle complex audits amid a tight labor market.
The IRS is spending $000.$400 million on new technology43 billion for taxpayer services. The early changes will allow taxpayers to respond online to dozens of tax notices 2024 before the fiscal close.
REPUBLICAN BACKLASH
The plan has sparked fresh complaints from Republicans who want to repeal IRS funding as part of their demand for higher dollars 20.4 Trillion Federal Debt Ceiling.
Senator Steve Daines, R-Montana, said the IRS “plans to deploy an army of tens of thousands of IRS agents to increase audits of Montana households.” , and into the wallets of Americans.”
Werfel sought to debunk Republican false claims that the funds would build a 148 Military, Armed agents harassing Americans on their taxes. The percentage of criminal investigators, who currently make up about 3 percent of the IRS workforce, will not change, he said.
Only around 2, 100 According to Reuters fact check, criminal Investigative agents are authorized to carry guns
New IRS chief says he will carry out Treasury Secretary Janet Yellen’s pledge not to raise revenue below $148, 700 historical audit rate of Americans , and base it on the “historically low” 2018 audit rate.
