10/01/24

US: IRS Receives Adequate Funding for Modernization, Affirms U.S. Treasury Secretary Janet Yellen

As published on: bnnbreaking.com, Wednesday 10 January, 2024. 

In a significant development, U.S. Treasury Secretary Janet Yellen affirmed that the Internal Revenue Service (IRS) is sufficiently funded to pursue its ambitious modernization projects. This assurance comes on the heels of a substantial budget increase for the IRS, aimed at revamping its services and operations. The modernization efforts form part of a broader initiative focused on enhancing the efficiency and effectiveness of the agency.

Overcoming Challenges with Increased Funding

The IRS, grappling with issues stemming from outdated technology and understaffing, is set for a transformative journey. The increased budget allocation serves as a lifeline, enabling the agency to refresh its IT infrastructure, bolster taxpayer services, and enhance enforcement capabilities. Secretary Yellen underscored the criticality of these improvements for preserving the integrity of the tax system and ensuring compliance.

Implications for Taxpayers and Federal Revenue

The modernization is set to bring resounding benefits for taxpayers, simplifying the tax filing process and expediting refunds. Additionally, it is predicted to amplify the agency’s ability to detect and address tax evasion. This increased vigilance, in turn, could potentially lead to a rise in federal revenue. In the broader context, Yellen’s confirmation that the IRS’s modernization drive will remain unaffected by the top-line federal spending deal reached by congressional leaders is a testament to the government’s commitment to fortifying the agency.

Keeping in view the looming ‘tax gap’—an annual loss of as much as $160 billion—Yellen highlighted the urgency of IRS improvements. Additionally, she advocated a new requirement for businesses to file disclosures of their beneficial ownership, a measure aimed at cracking down on money laundering.

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US IRS US Treasury Modernization