The IRS is hiring 3,700 more IRS employees

The IRS is hiring 3,700 more IRS employees

In remarks touting in Maryland last month, President Biden again repeated a tax pledge that goes back to his 2020 campaign.

Why is no one making under $400,000 - who had never seen that - but no one making under $400,000 will see their federal taxes go up a single penny, Biden said.

The Department of Revenue Service said yesterday that it is hiring 3,700 new employees as part of its expansion to target these wealthy taxpayers.

The problem as far as auditing goes is that there is no way to identify the complete population of taxpayers that meet the criterion of $400,000 or more, according to the Treasury Inspector General for Tax Administration.

The IRS's guidance for high earners hasn't changed since 1976 when it categorized anyone earning $200,000 as a high earner, according to TIGTA. The IRS also passed on TIGTA's recommendations to formally identify $400,000 as the threshold for high income because the agency wants to maintain 'agility'.

The inspector general's findings blew up the narrative, on taxing only the rich, and shows Democrats are knowingly lying, said Grover Norquist, president of Americans for Tax Reform.

In a debate over the inflation reduction bill in August 2022, Norquist noted that every Senate Democrat voted against a proposed amendment by Sen. Mike Crapo, R-Idaho, to legally restrict any new audits of taxpayers earning less than $400,000. The tax boosted the IRS budget by $80 billion over 10 years.

The IRS contends that the inspector general's analysis does not counter the administration's priorities.

The TIGTA report notes that when the definition of the high-income threshold is too low, it means more audits of a wider group of people, and warns that such audits would be less productive.

The inspector-general report said the IRS lacks an updated definition of high-income taxpayers.

This finding is relevant considering the announcement of $3,700 new hires, said Norquist President and CEO Donald Norquist.

It appears too scary considering about 87,000 new agents will likely be hired, Norquist said in a statement. t expect an announcement for later hiring binges, he said.