Internal Revenue Service (IRS) Commissioner Charles Rettig sent a letter to members of the Senate last week, stating the agency would “absolutely not” increase tax audits on small businesses and middle-class Americans — when over 87,000 more IRS agents are added to the agency’s rolls following the passage of the so-called “Inflation Reduction Act” on a party-line vote.
“The resources in the reconciliation package will get us back to historical norms in areas of challenge for the agency – large corporate and global high-net-worth taxpayers – as well as new areas like pass-through entities and multinational taxpayers with international tax issues, where we need sophisticated, specialized teams in place that are able to unpack complex structures and identify noncompliance,” the commissioner wrote.
“These resources are absolutely not about increasing audit scrutiny on small businesses or middle-income Americans. As we’ve been planning, our investment of these enforcement resources is designed around the Department of the Treasury’s directive that audit rates will not rise relative to recent years for households making under $400,000,” Rettig explained, adding, “Other resources will be invested in employees and IT systems that will allow us to better serve all taxpayers, including small businesses and middle-income taxpayers. Enhanced IT systems and taxpayer service will actually mean that honest taxpayers will be better able to comply with the tax laws, resulting in a lower likelihood of being audited and a reduced burden on them.”
“The IRS has fewer front-line, experienced examiners in the field than at any time since World War 11, and fewer employees than at any time since the 1970s,” he claimed. “As a result, the IRS has for too long been unable to pursue meaningful, impactful examinations of large corporate and high-net-worth taxpayers to ensure they are paying their fair share. This creates a direct revenue loss from evaders and lessens the potential to deter others from pursuing a similar path of non-compliance. Every American should support a fair and impartial system of tax administration supported by an appropriately resourced tax administrator.”
While Democrats and the commissioner claim the army of IRS agents would not increase auditing on middle-class Americans and small businesses, it’s important to note over half of the audits last year were conducted on Americans making less than $75,000, The Washington Post reported.
The agents are said to have been approved with the idea that they would only be used to audit corporations and the few hundred billionaires across the U.S.. Their actions, however, say otherwise.
In response to the increase in IRS agents, Sen. Ted Cruz (R-Texas) stated the bill “is a giveaway to the Democrats’ radical leftist base at the expense of middle-class Americans. It’s a betrayal of President [Joe] Biden’s promise to not raise taxes on the middle class. Make no mistake—this bill will hurt America and hardworking Americans at a time when we can least afford it.”
“According to expert analysis, it will supercharge the IRS with 87,000 new IRS agents to target Americans with 1.2 million new audits, more than half of which would be for people making less than $75,000 a year,” Cruz explained.
Proving Cruz’s point, an amendment was introduced to the bill by Sen. Mike Crapo (R-ID.) aimed at preventing, “the use of additional Internal Revenue Service Funds from being used for audits of taxpayers with taxable incomes below $400,000 in order to protect low- and middle-income earning American taxpayers from an onslaught of audits from an army of new Internal Revenue Service auditors funded by an unprecedented, nearly $80.000.000.000, infusion of new funds.”
The amendment failed on a party-line vote, however, with all 50 Democrats voting against it. Liberals will not keep their word and said whatever they had to — so they could get their $740 billion bloated package passed.
In a time when the United States is in a recession, Americans all over are struggling economically. And while inflation is at 8.5 percent, Democrats dare to ask for more hard-earned money out of American pocketbooks, as IRS agents descend upon the middle class to suck out as much cash as possible. Remember to vote in November.
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