Evaluating IRS Funding Increase: Biden's Focus on Middle-Class Audits and Compliance

President Joe Biden's recent push to increase funding for the Internal Revenue Service (IRS) has sparked debate and criticism. Critics argue that much of the new funding is being directed towards middle-class and small businesses, rather than the “ultra-wealthy.” While some claim that wealthy individuals employ professional accountants and attorneys to ensure accurate tax returns, this argument doesn't align with the realities of modern tax compliance and enforcement.

Audit Focus and Inaccuracy Rates

The assertion by some that the new IRS audits are specifically focused on the wealthy is misleading. In truth, the majority of inaccuracies are found in the returns of smaller businesses and middle-class taxpayers who often use cheap, novice-prepared tax services. Such services lack the depth of knowledge and experience to fully understand the complex federal tax code. Therefore, the need for increased IRS funding isn't aimed at the ultra-wealthy, but rather at addressing these widespread issues within the tax compliance system.

Funding Constraints and Enforcement Efforts

It's crucial to understand that the IRS historically lacked both the resources and manpower to conduct comprehensive audits on a large scale. This situation meant that many wealthy individuals were able to evade their tax obligations with relative ease. The new funding is intended to address this imbalance by allowing the IRS to conduct more thorough and frequent audits.

The Political Context and Goals

The real motivation behind the increased IRS funding, as many critics suggest, is a desire to streamline the tax collection process and ensure that all taxpayers, regardless of income, comply with the federal tax code. This effort is intended to generate additional tax revenue, which can then be used to fund various domestic initiatives and support infrastructure developments.

Moreover, the specifically allocated funds are meant to target individuals who earn over $400,000 annually and meet the suspicion criteria for an audit. However, the political divide has led to misinformation and stigma, with Republicans often accusing the IRS of targeting middle-class citizens through the guise of auditing the wealthy.

Conclusion

While debates about taxation and enforcement persist, it is essential to examine the facts and intentions behind increased IRS funding. The focus on middle-class and small business audits is not an attempt to attack the middle class but rather an acknowledgment of the systemic issues that have long existed within the tax compliance system. By increasing funding and manpower, the IRS aims to ensure fair and accurate tax compliance, ultimately benefitting the broader economy and supporting U.S. citizens as a whole.

Key Points:

The increased IRS funding is aimed at addressing widespread inaccuracies in middle-class and small business returns. Prospective audits target those earning over $400,000 annually to ensure fair tax compliance. Political stigmas and misinformation often cloud the true intentions of tax enforcement efforts.