The $80 billion question: What will the IRS do with all its new money?

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The $80 billion question: What will the IRS do with all its new money?
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The IRS is about to get a big chunk of change, and you’re going to be hearing a lot about it between now and the November elections

The IRS not only has to develop its spending plan, it will also have to implement it. | Patrick Semansky/AP.

Republicans are taking that figure from a chart buried in a report the Treasury Department issued last year on its plans for the agency, but here’s the thing: It doesn’t actually say how many examiners it intends to bring on. Democrats had included provisions in their legislation to that effect, though it was deleted by the Senate’s parliamentarian as a violation of the chamber’s arcane rules about what sorts of things can go into so-called reconciliation bills. That prompted the administration to release a letter Wednesday by Treasury Secretary Janet Yellen pledging “audit rates will not rise relative to recent years for households making under $400,000.

In any case, it’s worth noting that very few average Americans get audited — just 0.1 percent of those making between $75,000 and $100,000 in 2019. The department publishes a slew of data about who exactly gets audited so if middle-class examinations suddenly jump, that should be apparent in the numbers.It certainly looks like it compared to the agency’s current headcount, which the IRS says stood at 78,661 last year. It looks smaller though compared to how many people the IRS used to have.

The administration believes it could be more than that. Democrats had battled CBO over this, arguing the scorekeeper was lowballing the likely savings since, lawmakers said, many tax scofflaws would be deterred from cheating by a newly empowered tax agency.There were provisions in the legislation directing the agency to issue a report to Congress within six months on what it intends to do with the cash.

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