IRS will get $80 Billion to Close the Tax Gap

Los Angeles CA

04 May, 2021

11:46 AM

Description

What does President Joe Biden's recently-announced $1.8 trillion proposal mean to you? In today's video we talk about how this $1.8 trillion will be used. We know that the IRS is vigorously trying to close the tax gap and expected to increase Audits & Collections. Over the past 10 years, the IRS has become under-funded, with many IRS employees being let go. Over this time, the audits by the IRS have fallen by 72% and the IRS has lost more than 17,000 employees. However, through President Joe Biden’s $1.8 trillion proposal, known as the American Families Plan, IRS enforcement efforts will be invigorated through a heightened budget. With the proposed budget increase, Rettig, the IRS Commissioner, plans to hire up to 4,875 more IRS employees in the enforcement part of the agency. This plan is proposed to boost the IRS’s funding by $80 billion over 10 years. This will reform the IRS through technology upgrades and hiring more employees. Ultimately, it will help close the “tax gap” of about $700 billion over 10 years.