The Internal Revenue Service (IRS) is working to overcome numerous challenges, a task that the extra funding from the Inflation Reduction Act will partially assist. During a recent congressional hearing, IRS Commissioner Danny Werfel highlighted his commitment to enhancing the agency's efficiency and effectiveness, acknowledging the crucial role of the IRS in generating the bulk of the federal government's revenue.
Werfel emphasized the significance of the new funding in elevating service quality, enforcing smarter policies, advancing technology, and improving data security. These changes, he noted, are vital to maintaining a high-functioning IRS that efficiently collects over $4 trillion annually, a significant contribution to federal operations.
Concurrently, Jessica Lucas-Judy from the Government Accountability Office (GAO) reported on the IRS's persistent issues. The report underscored the IRS's struggles with customer service, return processing, data protection, and outdated IT infrastructure. While the IRS has acted on many GAO recommendations, some critical areas still require attention, such as digitalization, workforce development, and contractor management.
Representative Kweisi Mfume, emphasizing the importance of continued support for the IRS, cautioned against budget cuts. He argued that reducing resources could impede the IRS's capacity for essential reforms and urged bipartisan support to sustain the IRS's budget. This financial backing, Mfume contended, is crucial for the IRS to continue its progress and effectively support government operations.
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