IRS Commissioner Charles Rettig told lawmakers on May 18th that his agency would focus new funding on reigning-in wealthier taxpayers and corporations that don’t always abide by the tax law.
“Any new resources the IRS might receive will be focused on higher income individuals with more complex transactions. The big and super big corporations; absolutely,” he told a House Appropriations Subcommittee. “That’s where all of our experienced revenue agents are currently and those are the people that we’re trying to expand to go into that direction.”
Certain congressional lawmakers seek to provide $80 billion to the IRS for increased enforcement but they have been hamstrung in passing legislation. The bill, termed Build Back Better, has passed the House, but has been stalled in the Senate for roughly 6 months.
The bill includes $80 billion for increased IRS enforcement that is projected to generate more than that amount in new revenue, according to the Congressional Budget Office:
The Congressional Budget Office estimates that the funding for tax enforcement activities provided by the bill would increase outlays by $80 billion and revenues by $207 billion, thus decreasing the deficit by $127 billion, through 2031…
It is not clear if Rettig will ever get the additional funding. Congressional discussions on the Build Back Better plan have recently been sparse, to the point that some lawmakers refuse to answer reporters’ questions about its status.
Still, certain congressional leaders intend to eventually pass the legislation. However, with each passing day the midterm elections grow closer, and passing the bill will be harder to accomplish. Lawmakers will soon turn their attention away from legislation and toward getting re-elected.
We're Here to Help
