Hello, Guest.!

Treasury Secretary Janet Yellen Asks IRS to Draft Reform Plan

1 min read

Treasury Secretary Janet Yellen has directed the Internal Revenue Service to come up with an operational plan to disburse the funds authorized under the Inflation Reduction Act to help initiate reform initiatives at the IRS, The New York Times reported Wednesday.

The Inflation Reduction Act that was signed by President Biden into law Tuesday will provide the IRS with $80 billion in funds through fiscal year 2031 to support overhaul efforts.

Yellen issued a memo to IRS Commissioner Charles Retting citing her top priorities for the agency, such as enhancing taxpayer services, addressing the unprocessed tax return backlog, hiring new staff and replacing obsolete technology systems.

According to the memo, the IRS should develop the plans within six months. Wally Adeyemo, deputy secretary of the Treasury, will collaborate with Rettig to work on the initiatives and establish the timelines.

The law “provides the I.R.S. what it has needed for years — a stable stream of mandatory funding that will allow the agency to serve American taxpayers the way they deserve and to enforce the tax laws against high-net-worth individuals, large corporations and complex partnerships who today pay far less than they owe,” Yellen wrote in the memo.