Has the Biden administration sought funding for nearly 87,000 new IRS employees?
In May 2021, the Biden administration proposed funding increases for the IRS, including funding for 86,852 new agency employees.
The Treasury Department said the hiring is needed because of expected departures of current employees along with growth in enforcement and customer service responsibilities. The department says understaffing, along with outdated technology, contributes to the large-scale tax avoidance in the U.S.: 15% of owed taxes go uncollected, causing an estimated $600 billion in lost revenue annually.
In response to Republican objections on privacy grounds, the department clarified that audit rates would not rise for those making under $400,000 per year. Instead, the IRS will "target enforcement actions where they belong: on higher earners who do not fully report their tax liabilities" given that "the tax gap is more concentrated toward the top of the income distribution."