The US House of Representatives has approved a bill that would give the IRS $80 billion over the next decade. Most of the money goes to more effective law enforcement. Some Republicans oppose it.
The federal government wants to collect more than ever from $600 billion in unpaid taxes each year.
“By strengthening the IRS’s ability to go after wealthy tax evaders, we could raise at least $400 billion over the next 10 years, and I suspect more,” said Natasha Sarin, Treasury’s tax policy and implementation adviser.
As reported on Sunday by public radio NPR, Sarin promised that the funds would not be used to strengthen audits of small businesses and households with incomes below PLN 400,000. dollars per year.
In the last fiscal year, Syracuse University scientists found that 46 percent of IRS audits focused on people with very low incomes who enjoy tax credits received the Earned Income Tax Credit. They were monitored three times more than ordinary taxpayers.
“As experienced auditors pass away, the IRS is increasingly focusing on simpler audits for low-income households, even though they account for a smaller portion of unpaid taxes,” the NDP noted.
He pointed out that the new tax provisions are part of the climate and health bill passed by the House of Representatives on Friday. The funding increase has sparked opposition from some Republicans, he added. The bill must be approved by the Senate, the upper house of Congress.
“Imagine IRS agents descending on America like a swarm of locusts. These IRS agents aren’t out to go after billionaires. They’re out to go after you, your small business. They’re out to go after you. Your family,” Texas Senator Ted Cruz told Fox Business.
According to the NDP, both Treasury Secretary Janet Yellen and IRS Commissioner Charles Reddick, appointed by former President Donald Trump, have emphasized that additional enforcement efforts will target wealthy, not middle-class taxpayers.
“Twitter’s irretrievable researcher. An amateur social media lawyer. Award-winning music expert. Became an addict. Easily lethargic.”