Treasury Secretary Janet Yellen laid out her vision for a modernized, responsive, tech-savvy tax collection agency equipped to manage 21st century challenges at an IRS office in New Carrollton, Maryland, on Thursday.
In Maryland, Yellen talked about updating computer systems to help automate the scanning of millions of individual paper returns into a digital copy by next filing season,on high-wealth taxpayers and companies, and hiring thousands more people to answer the phones.
Last month, shortly after the IRA funding was secured, Yellen directed the IRS to develop a plan within six months outlining how the tax agency will overhaul its technology, customer service and hiring processes. In part, the improvements are meant to “end the two-tiered tax system, where most Americans pay what they owe, but those at the top of the distribution often do not,” Yellen said in an August memo to IRS Commissioner Chuck Rettig, whose term ends in November.
“Especially amid the recent rise in deeply unfair and dangerous misinformation and threats, there is nothing more important to me than for you to be able to safely carry out your critical job for the American people,” she said. “The tax gap – the amount of unpaid taxes – has grown to enormous levels. It’s estimated at $7 trillion over the next decade,” she said.
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