The US IRS is planning to hire nearly 30,000 new employees and deploy new tech in the coming two years. Read to know more.
IRS plans to hire 30,000 new employees
Thanks to $8.64 billion worth of new funds during the 2023 and 2024 fiscal years, the U.S. Internal Revenue Service is planning to hire nearly 30,000 new employees. In the long-awaited Strategic Operating Plan, the agency announced the new plan.
“The IRS is going to hire more data scientists than they ever have for enforcement purposes,” stated Wally Adeyemo. Adeyemo, the U.S. Deputy Treasury Secretary added that the move will complement tax attorneys and revenue agents in using data analytic technology to determine audit targets.
The IRS is going to continue ramping up customer service hiring after hiring 5,000 new taxpayer service staff recently to process tax returns and reopen taxpayer assistance centers. With the new hires, the agency’s customer services hiring will total 13,883. However, a significant portion of the new hires is going to replace nearly 12,000 employees expected to retire. The new funding from 2022’s climate-focused Inflation Reduction Act will aid in rebuilding the IRS’ audit capacity and computer technology from the 1960s.
More on the new move
The IRS is aiming to close the “tax gap” between the taxes paid and owed by focusing on the wealthy. According to the Treasury, it is estimated to total about $600 billion per year. Almost 60% of the $79.4 billion investments will be allocated towards expanding the enforcement of “taxpayers with complex tax filings. And high-dollar noncompliance.” “Those audit targets include wealthy individuals, corporations, and complex partnerships. Which have grown in number while IRS audit staff has shrunk by nearly half over the past decade,” stated Danny Werfel. Werfel is the new Commissioner of the tax agency.
The IRS “plans to deploy an army of tens of thousands of IRS agents to increase audits on Montana families. And reach into the pocketbooks of Americans,” stated Senator Steve Daines, a Montana Republican. Werfel is debunking erroneous claims made by the Republicans that the funding will create 87,000 armed agents who will start harassing Americans on taxes. Werfel revealed the percentage of Criminal Investigation staff in the IRS will not change from the current three percent.