{"id":26280,"date":"2023-02-15T11:50:08","date_gmt":"2023-02-15T11:50:08","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2023\/02\/15\/irs-nominee-vows-no-audit-boost-for-households-under-400k\/"},"modified":"2026-08-08T05:04:25","modified_gmt":"2026-08-08T05:04:25","slug":"irs-nominee-vows-no-audit-boost-for-households-under-400k","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/congress\/2023\/02\/15\/irs-nominee-vows-no-audit-boost-for-households-under-400k\/","title":{"rendered":"IRS nominee to face questions over how agency will spend $80 billion"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">If confirmed as IRS commissioner, <a href=\"https:\/\/apnews.com\/article\/politics-internal-revenue-service-us-department-of-the-treasury-barack-obama-business-d5d5689314f6468ae7432d1f8ded8c9f\">Daniel Werfel<\/a> says he will commit to not increasing tax audits on businesses and households making less than $400,000 per year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Anticipating questions ahead of his confirmation hearing Wednesday before the Senate Finance Committee, Werfel in prepared testimony makes several other commitments aimed at revamping the beleaguered agency.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">President Joe Biden nominated Werfel to steer the Internal Revenue Service as it receives a massive funding boost \u2014 nearly $80 billion over the next 10 years through the Inflation Reduction Act, which Congress passed in August. Noting the act\u2019s impact on the federal tax collector, Werfel says that \u201cAmericans rightfully expect a more modern and high-performing IRS.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While promising to modernize the agency\u2019s technology, address its paperwork burden and audit high-income earners, Werfel says he will be \u201cunyielding in following my true north to increase public trust.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Werfel, 51, who led Boston Consulting Group\u2019s global public sector practice, <a href=\"https:\/\/apnews.com\/article\/biden-donald-trump-business-congress-internal-revenue-service-098d99b2642e7bea619f7a8e120153e0\">was nominated<\/a> to replace Charles Rettig. Selected by President Donald Trump to lead the agency, Rettig left when his five-year term ended in November. An acting commissioner has been filling in.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Werfel will also have to navigate controversy surrounding the new funding, brought by critics who have distorted how the new law would affect the IRS and taxes for the middle class. About $46 billion was allocated for enforcing tax laws and the rest to taxpayer services, operations support and updating business systems.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Republicans have suggested without evidence that the agency would use the new money to hire an army of tax agents with weapons.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Disapproval of the agency reached new heights when House Republicans began their tenure in the majority <a href=\"https:\/\/apnews.com\/article\/politics-united-states-government-internal-revenue-service-us-republican-party-house-of-representatives-64692090ef20e35a59ba1ea7d21a9eea\">last month<\/a> by passing a bill that would rescind the funding, fulfilling a campaign promise. The legislation has not advanced in the Senate and is unlikely to reach Biden, who has promised a veto.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe hearing promises to be a doozy, and not only because the IRS is one of the most unpopular government agencies in the United States,\u201d said Janet Holtzblatt, a senior fellow at the Urban-Brookings Tax Policy Center. \u201cThis will be the first big IRS hearing since it received an $80 billion boost to its budget in the Inflation Reduction Act.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">GOP criticism appeared more directed at Biden administration efforts to bolster funding for the agency than at Werfel himself. But tax experts say Werfel should expect to face a slew of managerial questions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Caroline Bruckner, a tax professor at the American University Kogod School of Business, said that, if confirmed, Werfel would have to address the massive workforce challenges at the IRS wrought by attrition, an aging workforce and a generally poor reputation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe next generation of accountants don\u2019t want to work for the IRS,\u201d Bruckner said. She added, \u201cTo attract the best talent, particularly with Millennials and Gen-Z workers who will be the future of the workforce, transparency as a leader will go a long way.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bruckner referred to a <a href=\"https:\/\/siepr.stanford.edu\/publications\/measuring-and-mitigating-racial-disparities-tax-audits?&#038;utm_source=%20urban_newsletters&#038;utm_medium=news-DD&#038;utm_term=TPC\">Stanford University study<\/a> that showed IRS data-driven algorithms chose Black taxpayers to audit up to 4.7 times the rate of non-Black taxpayers. \u201cThe next generation of workers care about these things, and this is a leadership challenge,\u201d she said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Robert J. Kovacev, a federal tax attorney at Miller &amp; Chevalier in Washington, said Werfel will have to explain how the agency could best spend its new funding.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cI think that $80 billion gives the IRS some choices on how to improve that they didn\u2019t have before,\u201d he said. \u201cThey could spend it on new revenue agents, or new technology investments to make it fairer and more efficient.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Werfel, nominated by President Joe Biden to steer the IRS as it receives the massive funding boost, gets his confirmation hearing Wednesday.<\/p>\n","protected":false},"author":7,"featured_media":46238,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":38,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[38,31,15,68,9],"tags":[],"coauthors":[4039],"class_list":["post-26280","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-congress","category-home","category-management","category-leadership","category-federal-oversight"],"acf":{"subheadline":"","legacy_arc_id":"B24GRQ4WEFDRZN42BBV7ZYFS24","arc_canonical_url":"\/federal-oversight\/congress\/2023\/02\/15\/irs-nominee-vows-no-audit-boost-for-households-under-400k\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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