DOGEs IRS staff layoffs could let wealthy tax dodgers get away with unpaid bills, say Democrats
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After the Trump administration and Elon Musks Department of Government Efficiency (DOGE) gutted the Internal Revenue Service (IRS) by firing an estimated 7,000 workers, the agency responsible for collecting our nations taxes is now poised to close audits on some of the wealthiest taxpayers, who may not have paid their fair share.Democrats are warning that wealthy tax dodgers could soon benefit from fewer compliance staff, which would dismantle President Bidens efforts to strengthen tax enforcement on the rich. During the Biden administration, the IRS received $80 billion, in part to help the under-resourced agency hold these high-income individuals and large corporations accountable, which resulted in collecting $1.3 billion in back taxes, according to the Internal Consortium of Investigative Journalists.Last week, more than 130 House Democratssent a letter to Acting IRS Commissioner Melanie Krause questioning the mass firings at the already overburdened agency, saying the move threatens to undermine the IRSs capacity to serve the American people effectively right before tax season, including ensuring that taxpayers receive timely services and refunds. (The last thing financially struggling Americans need right now is an IRS that cant process our tax refunds promptly.)These efforts are not only a matter of fairness but also a necessity for addressing our nations debt and revenue shortfalls, the letter continued. The loss of thousands of compliance staff . . . could cripple this progress, emboldening tax evasion, and depriving the U.S. of urgently needed resources.Senate Democrats are also worried about the cuts hampering the IRSs ability to function properly during the upcoming tax season, prompting 18 Democrats to send a letter to the Treasury Inspector General for Tax Administration, saying the recent layoffs would likely reverse recent improvements in taxpayer service, causing phone wait times to increase. In 2022, the average phone wait time was 28 minutes, but it went down to just 3 minutes during the 2023 filing season, which was maintained through 2024.They also argued that the layoffs would interfere with the agencys ongoing efforts to crack down on highly sophisticated tax-evasion structures used by ultra high-wealth taxpayers and companies, including offshore tax evasion, large opaque partnerships, and abuse of luxury assets like private jets.
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