The Internal Revenue Service (IRS) is currently experiencing a significant reduction in staff through deferred resignations during tax season. The agency had significantly grown under President Biden, but has now shrunk back to its pre-Biden size. The IRS had planned to hire and train around 16,000 probationary workers to further audit corporations and wealthy taxpayers. However, there are concerns about the impact of these staff reductions on the agency’s ability to collect unpaid taxes.
The Biden administration argued that increased IRS enforcement on households making more than $400,000 per year would save the government money, as research shows that every dollar spent auditing wealthy households brings in $4 in additional revenue. However, experts are concerned that the staffing reductions may result in a loss of tax revenue for the government.
There have been leadership changes at the IRS, with Acting Commissioner Melanie Krause resigning. The agency has also faced criticism for agreeing to share tax information with federal immigration agents to locate immigrants in the U.S. illegally. Concerns have been raised about the potential impact of these staff reductions on taxpayer services and data privacy and security.
Overall, the IRS’s current staffing situation has raised concerns about its ability to effectively carry out its functions, particularly in terms of tax enforcement and revenue collection.
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