The Treasury inspector general for tax administration, has submitted a memorandum to Treasury Secretary Janet Yellen offering the internal watchdog's "perspective on the most serious management and performance challenges confronting the IRS" for fiscal year 2023. (Memorandum dated October 13, 2022)
TIGTA emphasized the effect the Inflation Reduction Act of 2022 (PL 117-269), with its $80 billion in agency funding and numerous tax provisions, will have on the IRS.
"It will be a significant challenge for the IRS to administer these provisions and effectively use the additional funding to address the challenges of improving taxpayer service, modernizing outdated technological infrastructure, and increasing equity in the tax system through added enforcement actions," the memorandum stated.
For FY 2023, TIGTA identified the following as the IRS' top management challenges:
Although not listed separately, human capital is also a significant concern, and it affects the IRS' ability to address the above challenges."
The likelihood of a significant improvement in the IRS and increased ability to audit sufficient taxpayers who are causing the tax gap, is just not likely, given these facts.
So, for the near future, expect make more the same from the IRS, despite the additional $45.6 billion in enforcement funding, as part of a nearly $80 billion funding increase included in the Inflation Redution Act. 😥
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