Designations of the IRS’ new $80 billion remain a top concern for the small-business community.
Last week, the Treasury Department and IRS issued their long-term Strategic Operating Plan outlining intentions for spending nearly $80 billion in funding provided by the Inflation Reduction Act (IRA).
A plan spanning 160 pages, the IRS has five main objectives guiding allocations of the funding over the next 10 years. Those objectives include: improved services to help taxpayers; quickly resolve taxpayer issues; focus expanded enforcement on high-dollar noncompliance and those with complex tax filings; improve technology and data; and hire and improve the IRS workforce.
Each priority objective describes initiatives and projects designed to achieve these goals within the next decade; however, the document provides little insight into the short-term hiring targets.
After the IRA provided the $80 billion to the IRS, NSBA expressed concern about what this would mean for owners’ regulatory burdens. The Biden administration maintains this funding will not increase the percentage of audits against taxpayers earning under $400,000 annually, but the IRS has yet to provide specifics regarding actual audit rates.
NSBA will continue to monitor the rollout of these new funds for the IRS, and urges policymakers to focus on improving taxpayer services and response times rather than increasing audits on small-business owners.
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