The buzz has been going around for months ever since Biden passed the Inflation Reduction Act of 2022 into law on August 16, 2022, claiming that he hired 87,000 new IRS agents to increase audits on middle-class Americans. This claim is false, the IRS isn’t using the $80 billion in funding for the IRS to hire 87,000 IRS agents.
“New staff will be hired to improve taxpayer services, as well as experienced auditors who can take on corporate and high-end tax evaders without raising audit rates relative to historical norms for people earning less than $400,000 per year,” a Treasury Department spokesperson said.
How Is The $80 Billion In IRS Funding Being Used?
The IRS will receive $80 billion in funding over the next 10 years under the Inflation Reduction Act of 2022. About $45.6 billion of the $80 billion will be used for expenses related to IRS tax enforcement services through September 2031, including hiring more employees. However, the legislation doesn’t mention that the IRS will be hiring 87,000 new IRS agents specifically tasked to do audits. Actually, the U.S. Department of the Treasury says these claims are false.
Additionally, the IRS is expecting a large number of employees to leave in the next 10 years and will hire new staff to fill those roles. At least 50,000 staff members will leave or retire from the agency in the next five years alone, according to the Treasury Department.
How Do Taxpayers Avoid a Tax Audit?
If you’re still concerned that you’ll be among the less than 1% of taxpayers whose returns are audited, make sure to avoid common errors that the IRS computer system is more likely to detect. Some mistakes made by taxpayers may appear obvious, but they are often overlooked. Here are some common errors taxpayers make when filing.
Numbers in your return not matching documents submitted by other payers
Mismatched tax ID numbers
Income not matching
Mis-entering dependents’ Social Security numbers
Forgetting to sign your return
Overestimating the value of property donated to charity
Reporting unusually large deductions (say, for business expenses) compared with previous years
Claiming losses from a business activity the IRS views as a hobby
Procrastinating on filing your tax returns will not only result in audits but will also open the door to a world of interest and penalties that will be a burden on you, especially if you have current unpaid back taxes! The IRS Fresh Start Program consists of 4 main programs that are accessible to taxpayers who owe much more than they can reasonably afford to pay. The four major programs are as follows: Currently Not Collectible (CNC) Offer In Compromise (OIC), Installment Agreement (IA), and Penalty Abatement (PA). These relief programs from the IRS Fresh Start Program allow qualified taxpayers the option to reduce or even eliminate their tax debts. These tax experts will help you qualify for the program and help you figure out which options will give you the most suitable outcome. It is very important for taxpayers to remain tax compliant because it will save you interest and penalties on the current year and prevent you from a continuous circle of always owing tax.
Resolve Your Tax Bills
If you’ve found yourself in a nasty mess with the IRS, take a deep breath. For taxpayers who may have difficulty paying off an excessive amount of tax debt, there’s a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program. Any issues regarding back taxes, unfiled years, or any other tax-related problems may be solved through one program; the IRS Fresh Start Program!
How Simple Is Qualifying?
Considering that the Fresh Start Program is a federal program, you would think meeting the qualifications may be very difficult, but really, it’s a lot simpler and quicker than you think. Take the following steps in order to find out if you are eligible in as little as 3 minutes.
- Fill out some basic information about yourself and your back taxes here.
- Have a representative reach out to you to discuss your eligibility.
- Go through the enrollment process and finally reduce or eliminate your tax liabilities.