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Inflation Reduction Act (IRA) Part 1: IRS Funding

Social media had a lot to say about the IRS getting $80 billion from the bill:



However, there are a lot of good things in this bill pertaining to IRS modernization. Enhanced IT systems and services will make life easier for honest taxpayers to better comply with the law.



Things we love in the IRA bill 💓:

  • $3.18 billion for taxpayer services

  • $4.75 billion for business systems modernization including call back technology 📞and other technology to provide more personalized customer service but not the operation and maintenance of legacy systems.

  • $25 billion for operations support

Our firm is very excited about IRS call-back technology:


The processing time for paper returns and correspondences should be greatly reduced once these systems are in place:


IRS Enforcement:

45.6 billion for enforcement

Determine and collect owed taxes

Provide legal and litigation support

Conduct criminal investigations

Provide digital asset monitoring

Statement of IRS Commissioner Rettig:

❌ Audit rates will not rise for households making less than $400,000 relative to historical levels


Likely going after highly-complex transactions for high-net-worth individuals.






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