Staff Reports
IRS Commissioner Danny Werfel stated that the agency has made significant progress in improving customer service, but he emphasized the need for additional funding from Congress to sustain this progress. Two years ago, Congress allocated a large amount of money to the IRS to address issues such as unanswered phone calls, outdated technology, and backlogged returns. Werfel indicated that the funding for technology upgrades will run out by 2026, which could result in a significant drop in customer service levels.
IRS says it will need more money soon – https://t.co/JUJ4AeEBm2 – @washtimes
— S.A. Miller (@samillertimes) May 2, 2024
Werfel expressed concern that Congress has already reduced the allocated funds and urged lawmakers to restore the money and make it permanent. He underscored the importance of stable and secure funding for technology modernization and continued improvements in taxpayer service. The commissioner argued that if the IRS receives the full $104 billion over the next 10 years, it could lead to an additional $341 billion in higher tax collections for the government.
Some Republicans are concerned about the potential implications of increased funding for the IRS, fearing that it could empower the agency to excessively pursue average taxpayers. Werfel reassured that the focus is on targeting wealthy tax cheats and that audit rates for taxpayers earning under $400,000 remain at historically low levels. He also presented a new Strategic Operating Plan that outlines the IRS’s goals, including tripling audit rates for corporations with substantial assets and expanding the agency’s workforce.
The plan aims to enhance services through improved live assistance, simplified notices, and new digital tools, as well as the expansion of the IRS’s workforce. Werfel clarified that the additional positions are necessary to meet the needs of taxpayers and enforce tax laws responsibly. He emphasized that the number of new hires is below the previous levels in the late 1980s and early 1990s. Additionally, Werfel addressed misconceptions about the nature of new hires, stating that they cover various roles and are not all “armed agents,” as suggested by some Republicans.
Werfel highlighted the IRS’s ongoing efforts to enhance efficiency and the importance of continued funding for sustaining progress in taxpayer service and technology modernization.
