The Inflation Reduction Act of 2022 includes $80 billion in increased funding over 10 years. $45.6 billion is designated for enforcement with the goal of increased revenue. You’ve likely seen the headlines lately alluding to the fact that there will be agents “in the streets,” but the IRS has again confirmed that the enforcement will only be on high-income-earning taxpayers.
Additionally, the IRS has lost 23,000 workers since March 2020 and will lose another 50,000 in the next five years to retirement. This means the IRS will be looking for 87,000 new agents to maintain minimum functionality. In addition to hiring more agents, some of the funding is designated to answering phone calls and upgrading computer systems, which will also help with the enforcement component of the Inflation Reduction Act. Enforcement isn’t just agents, but also legal support and investments in technologies to aid investigations.
NATP hosted a live discussion on this topic as well as the ins and outs of an IRS audit with the expertise of Misty Erickson, NATP tax content specialist and former state of Minnesota IRS auditor. Watch the full replay below!
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Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.