The department’s total budget would increase by about 10 percent annually.
President Joe Biden is proposing to double the size of the IRS, by hiring nearly 87,000 new workers over the next decade, as part of a sweeping plan to chase down tax cheats.
The hiring spree, part of a bid to increase IRS funding by $80 billion, would be phased in to give the department time to adjust, the Treasury Department said in a report Thursday.
The agency’s workforce would never grow by more than a “manageable” 15 percent each year. And its total budget would increase by about 10 percent annually.
At the same time, the administration wants to require financial institutions and other businesses to report a lot more information about the money coursing through their customers’ accounts — a proposal designed to put the fear of the IRS in the hearts of tax scofflaws.
It’s part of a concerted effort by the administration to go after uncollected taxes owed by large corporations, partnerships and wealthy individuals — money Democrats want to use to finance their big-ticket spending plans.
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The IRS would get a big funding boost as part of the Biden administration’s effort to go after uncollected taxes owed by large corporations, partnerships and the wealthy https://t.co/QSTvGibeTv
— POLITICO (@politico) May 20, 2021
How much additional tax money do they expect to collect by spending $80 billion to double the size of IRS? 1 billion? 10, 100 billion, 1 trillion?
Part of this effort will be to target those involved in cryptocurrency. I have a small amount of bitcoin and I was trying to determine whether I needed to pay tax on it. IRS regulations are as clear as mud. Most of the coin is held by an investment outfit which pays me regular interest. I’m reasonably sure I will owe taxes on the interest. The rest of the currency is held in virtual “wallets.” I don’t know if I will owe on those. I’m not even sure tax experts can understand the rules.
While there are those who cheat deliberately, the IRS will also go after people like me who simply don’t know whether or not they owe. I’m all for the IRS collaring the cheats. But before this collection effort goes forward, the IRS needs to rewrite the rules on crypto to make them clearer.
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