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Yellen tells IRS not to increase middle-class audits if it gets more funding

Economic Indicators Aug 11, 2022 12:30AM ET
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© Reuters. FILE PHOTO: U.S. Treasury Secretary Janet Yellen holds a news conference in the Cash Room at the U.S. Treasury Department in Washington, U.S. July 28, 2022. REUTERS/Jonathan Ernst

WASHINGTON (Reuters) -U.S. Treasury Secretary Janet Yellen told the Internal Revenue Service on Wednesday that if the Inflation Reduction Act became law additional IRS resources should not be used to increase audit rates on taxpayers making under $400,000 a year.

The legislation, which passed the Senate over the weekend with no Republican support, increases the IRS budget by about $80 billion over 10 years.

Democrats say beefing up IRS enforcement will increase tax collection and help pay for the $430 billion bill, which tackles climate change and lowers prescription drug costs for seniors, among other provisions.

Republicans have criticized the additional funding for IRS tax enforcement, saying the agency will not just focus on wealthier taxpayers but also go after middle-class families.

Yellen told IRS Commissioner Charles Rettig in a letter released by the Treasury Department that any new IRS personnel "shall not be used to increase the share of small business or households below the $400,000 threshold that are audited relative to historical levels."

The IRS is a bureau of the Treasury Department.

Yellen said, "contrary to the misinformation from opponents of this legislation, small business or households earning $400,000 per year or less will not see an increase in the chances that they are audited."

The House of Representatives is expected to vote on the bill on Friday. President Joe Biden has said he would sign it into law.

Yellen tells IRS not to increase middle-class audits if it gets more funding
 

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Comments (17)
James Heitkemper
James Heitkemper Aug 11, 2022 6:45PM ET
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It is unconstitutional for the federal government to tax any citizen of any state. The I.R.S. is not legal, moral, or ethical. If you work for them or take a job with them you are immoral, u American, and lack conscious, and ethics. The tax collector has always been despised and hated. Goes back to Mathew in the Bible. The I.R.S. is totally unjustified since the feds are supposed to get their money from the states. When Congress needs money they just print more fake money. You pay your taxes in inflation and devaluation. Now they want to rip you off and enslave you even more. This country is run by the evil and corrupt. There is no saving grace. Fire Congress and shoot the tax man.
Augustus Smith
Augustus Smith Aug 11, 2022 1:27PM ET
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But they will. People over $400k will have all sorts of accountants and lawyers running interference.
gab nea
gab nea Aug 11, 2022 8:16AM ET
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the middle cannot cheat practically, they get a 140 or 1099 and they have to pay percentage with limited deductions. however the rich and corporations, they report (hide and cheat) how much they made and take massive deductions not to pay any taxes. so, where is the beef? I mean the tax cheats?
leehiung chong
leehiung chong Aug 11, 2022 1:43AM ET
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go after those who hires multiple accountants and consultants to defraud and exploit
Augustus Smith
Augustus Smith Aug 11, 2022 1:43AM ET
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The big accounting firms actually hire former tax officers. Who better knows the ins and outs? They offer them double, triple what the government pays.
Ab Yz
Ab Yz Aug 11, 2022 12:49AM ET
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This fat man is so wise.
rob finch
rob finch Aug 11, 2022 12:06AM ET
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Oh thank you Janet. You are so kind to us little people.
Jeffrey Beeler
Jeffrey Beeler Aug 10, 2022 11:52PM ET
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They’re coming after Republicans and anyone who does not support their radical agenda. 90% will be targeted at Red states. Obama started this targeting of political opponents and If you supported Trump (you’re probably middle class working Americans) they are coming for you!
nick cage
nick cage Aug 10, 2022 11:52PM ET
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They don't need 87000 agents to go after every small company. The are going after small biz. raise your prices now to cover the expenses
Keith Wilson
Keith Wilson Aug 10, 2022 11:25PM ET
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Lol please. Anyone with half a brain knows who the IRS is coming after. Theyre coming after the easiest targets .... with guns loaded and cocked.
Scot House
Scot House Aug 10, 2022 11:21PM ET
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Audits incoming. Do not respond.
Benjamin USA
Benjamin USA Aug 10, 2022 11:21PM ET
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Lmao great advice plz follow
Jack Nicholson
Jack Nicholson Aug 10, 2022 11:17PM ET
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We ain't buying it you old bag.
 
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