For fiscal year 2024, the IRS plans to boost enforcement staff by a net 5,462 employees, according to a Jan. 29 report by IRS watchdog Treasury Inspector General for Tax Administration.
In October, IRS Commissioner Danny Werfel pointed to the tax gap to justify the importance of "Increased IRS compliance efforts on key areas." At the time, he said that the agency would use IRA funding to strengthen compliance on "High-income and high-wealth individuals" as well as businesses.
Expanded Enforcement Out of the $79.4 billion in IRA funds, IRS had set aside $45.6 billion for enforcement.
There are also concerns that the IRS could use some of its IRA funding to boost enforcement on individuals making less than $400,000 per year.
Budget Shortfall Out of the $3.5 billion the IRS has used from IRA funding so far, almost $2 billion went to supplement its fiscal year 2023 appropriations, the TIGTA report stated.
IRS officials said they had to take $2 billion from IRA funds as the amount it received for spending in 2023 "Was insufficient to cover normal operating expenses and did not include adjustments to account for inflation, estimated at approximately $460 million from fiscal year 2022.".
The IRS calculates it would need $818 million more than last year's funding in 2024 just to continue regular operations.
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