The increasing likelihood of a government shutdown is spotlighting several federal agencies. But the IRS has been in the news lately, mainly due to being allotted $80 billion in the Inflation Reduction Act (IRA). (That amount will drop to about $60 billion due to the debt limit deal reached earlier this year.) After releasing a multibillion-dollar spending plan for the funding, the IRS launched new compliance initiatives focused on tax-evading millionaires, high earners, complex partnerships, and corporations.
The agency is also cracking down on fraud and tax scams, recently announcing a moratorium on processing new ERC tax credit claims. The IRS wants to hire 3,700 new agents to audit complex returns. In addition to ramped-up enforcement efforts, the agency has touted gains such as reduced processing times, faster tax refunds, and shorter wait times for taxpayer phone assistance.
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