TPA Slams the IRS’ New Spending Plan

For Immediate Release                                                 Contact: Abigail Graham: (202) 417-7235

April 6, 2023                                                                           

WASHINGTON, D.C. – Today, the Internal Revenue Service (IRS) released its Strategic Operating Plan for FY2023-2031, revealing how it plans to spend the extra $80 billion in taxpayer money it received in funding from the Inflation Reduction Act (IRA). Unfortunately, the plan spends more than half of funds on ramping up audits and other enforcement measures.

In response, David Williams, TPA President, offered the following comment:

“It is shameful to see that with all the customer service, IT, and privacy issues facing the IRS, the agency decided to spend $45 billion of the additional $80 billion on audits.  If history is any guide, this money will be used to audit lower income folks. In addition to the money spent, the American people were lied to repeatedly by the IRS and the Biden Administration.  Since the IRA was passed last year, the administration has stated numerous times that the additional funding would go towards improving the IRS’ failed customer service and alleviating the backlog of millions of unfinished tax returns. Taxpayer advocates warned about the harms to American families that would be caused by using this to increase audits and enforcement measures. Today, those worst fears have been realized.

“It’s sad, but not surprising to see this news. The IRS has proven to be an unreliable agency for the American people. The agency has been plagued with data security issues, routinely failing to secure Americans’ personal data. The agency also has a proven track record of using its existing audit authority to target political opponents of the administration, as well as the most vulnerable in our society, simply because the lower income folks that are targeted with audits don’t have the resources to fight back.

“If any government agency has proven to be a poor steward of taxpayer resources, it’s the IRS. This money should go towards fixing the myriad internal issues the agency faces, not focusing a more intense microscope on families and small businesses across the nation.  With Tax Day less than two weeks away, it is clear that the IRS prioritizes power and intimidation over customer service.”

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Taxpayers Protection Alliance (TPA) is a non-profit, non-partisan organization dedicated to educating the public through the research, analysis and dissemination of information on the government’s effects on the economy.