According to Law360, the IRS needs the additional funding promised in August under the Democrats' Inflation Reduction Act to hire more accountants, data scientists and economists to examine the nearly 400,000 tax filings made each year by wealthy individuals, partnerships and corporations, IRS Commissioner Daniel Werfel told a House committee Thursday.The Internal Revenue Service currently has only about 2,600 employees with the specialized skills to audit these complex returns, and they can't keep up with the work of processing the approximately 390,000 such returns filed annually, Werfel said in testimony before the House Ways and Means Committee.
"When we have multiple sources of income, like large partnerships, corporations, billionaires and multimillionaires, it takes up to 15 times longer for the IRS to assess and then audit those returns," Werfel told the committee.
To Audit A Middle- And Low-Income Taxpayer
When Those Audits Do Occur.
A Wealthy Or More Complex Return."
Earlier this month, Werfel released the agency's plan to spend the increased enforcement funding on hiring the personnel needed to carry out enforcement work, including attorneys, accountants and data scientists. The IRS is receiving $45.6 billion for enforcement as part of the nearly $80 billion funding increase over a decade provided by the new law.
Werfel echoed the statements made by Treasury Secretary Janet Yellen when she testified before the committee in March, saying that IRS enforcement resources will not be used to raise audit rates for households making less than $400,000 annually relative to historical levels.
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