The I.R.S. has a decent budget again

A Message from Chuck Rettig, Commissioner of Internal Revenue [to IRS employees]

The signing of the historic reconciliation package marks a transformational moment for our agency — and an opportunity for the future of tax administration as well as IRS employees.

As you know well, the IRS has struggled for many years to receive sufficient resources to fulfill our important mission. It's affected every one of you and the work you do and has limited our ability to provide services to taxpayers in the manner they expect and deserve. Despite that, each of you has worked extremely hard to respond to a never-ending string of challenges, including amazing accomplishments during the pandemic. I'm incredibly proud of everything you've been able to achieve, and this historic legislation ultimately reflects the importance of the work you do every day for taxpayers.

The Inflation Reduction Act allocates $79.6 billion to the IRS during the next 10 years. These funds will help us in many areas, including adding important resources for our tax enforcement, taxpayer service and technology. The Act also includes a wide range of tax law changes that we will have to implement very quickly.

This proposal creates opportunities for the nation's tax system in areas where we are challenged, helping us with needed resources to address large corporate and global high-net-worth taxpayers as well as pass-through entities and multinational taxpayers with international tax issues. To ensure fairness in the system, we need sophisticated, specialized teams in place that are able to analyze complex structures and identify noncompliance.

These resources are not about increasing audit scrutiny on small businesses or middle- or lower-income Americans. As we've been planning, our investment of these enforcement resources is designed around the Treasury Department's directive that audit rates will not rise relative to recent years for households making under $400,000.

Other resources will be invested in hiring, training and IT systems that will allow us to better serve all taxpayers, including small businesses and those seeking help with their taxes. And it will help us continue our efforts to help people who are more comfortable using a language other than English understand and meet their tax obligations.

Given the scope of the bill, keep in mind these changes will not be immediate. It's a 10-year plan, and it will take time to put these provisions into place. Make no mistake, we have a lot of hard work in front of us to deliver on the high expectations this historic funding will provide. But I have great confidence IRS employees are up to the task — and will deliver for the nation as they have countless times before in the history of our agency.

During my time as Commissioner, I've been incredibly proud to work alongside people who are so dedicated to our nation. The success of our country depends on the success of our agency's efforts, and this latest development makes the future look brighter for all of us.

Again, thank you for your commitment and dedication to helping every American.

Chuck