Yellen tells IRS to produce $80 billion spending plan within six months




  • In Politics
  • 2022-08-17 22:20:15Z
  • By Reuters
 

By David Lawder

WASHINGTON (Reuters) - U.S. Treasury Secretary Janet Yellen has directed the head of the Internal Revenue Service to produce a detailed plan for deploying $80 billion in newly enacted enforcement funding within six months, an internal Treasury memo showed on Wednesday.

Yellen wrote in the memo to IRS Commissioner Charles Rettig, reviewed by Reuters, that the operational plan "should include details on how resources will be spent over the ten-year horizon on technology, service improvement, and personnel."

"This operational plan is key to ensuring the public and Congress are able to hold the agency accountable as it pursues needed improvements," she wrote, adding that it must include metrics for areas of focus and targets for the agency to achieve in coming years.

The $80 billion in new resources is a key revenue-raising provision in President Joe Biden's $430 billion tax, climate and prescription drugs law signed on Tuesday. The Congressional Budget Office has estimated that the new resources would result in collection of an additional $204 billion in tax revenues over 10 years through improved tax compliance.

An earlier version of the bill would have statutorily required a detailed IRS spending plan within six months but that provision was later stricken. Yellen's memo administratively restored the deadline.

Yellen told Rettig that she was prepared to approve the near-term use of funds for improvements to next year's tax filing season, but the IRS plan was a "pre-requisite" for any broader use of funds by the agency.

Yellen also repeated her directive last week that she does not want the IRS investments to result in an increased chance of audits for households earning less than $400,000 or for small businesses, compared to "historical levels."

But it is unclear which historical audit rates Yellen is targeting. The Tax Policy Center, a Washington think tank run by the Brookings Institution and the Urban Institute, says a decade of budget cuts slashed overall audit rates in 2019 to 0.4% of individual tax returns from 1.1% in 2010 and the COVID-19 pandemic cut those rates further.

(Reporting by David Lawder; editing by Richard Pullin)

COMMENTS

More Related News

Oath Keepers trial: Ohioan among those facing sedition for storming US Capitol
Oath Keepers trial: Ohioan among those facing sedition for storming US Capitol
  • US
  • 2022-09-28 02:05:54Z

A federal trial into how the Oath Keepers attacked the U.S. Capitol begins this week. Ohioan Jessica Watkins is among the defendants.

Biden
Biden's Student Debt Forgiveness Plan Will Cost $400 Billion Over 30 Years: CBO

President Joe Biden's plan to forgive up to $20,000 in student loan debt for millions of borrowers would cost an estimated $400 billion over 30 years, the...

White House
White House's Deese Doesn't Expect Another Plaza Accord Coming

(Bloomberg) -- White House National Economic Council Director Brian Deese said he didn't expect another 1985-type agreement among major economies to counter ...

Yellen says
Yellen says 'monitoring' UK developments after pound plummets - FT

The financial turmoil of recent days appeared to be confined to Britain and was not spreading to the global economy, Yellen told reporters at the end of her ...

George Gilmore
George Gilmore's wife targets accounting firm in tax liability lawsuit

As of 2021, George and Joanne Gilmore owed almost $2.9 million in federal back taxes, according to a document filed by the Internal Revenue Service with the ...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

  • RBSE 8th Model Paper 2022
    (2022-08-18 10:42:55Z)

    Raj Board 8th Question Paper 2022 with Answers, RBSE 8th Model Paper 2022 Blueprint The State Class 8th Grade Annual Final Public Examination Tests will be held in 2022 by the Rajasthan State Board of Secondary Education Board in Ajmer, therefore download this exam. RBSE 8th Model Paper 2022 Prepare students by teaching them useful material in Hindi, English, and Urdu. After Links, Raj Board 8th Question Paper 2022 with Answers, Rajasthan 8th Model Paper Model Papers for the 8th grade from the Rajasthan Board, 2022

    REPLY

Top News: Politics