Larson: Inflation Reduction Act is Improving Customer Service at the IRS and Holding Wealthy Tax Cheats Accountable

Washington, D.C. - Today, in the House Ways and Means Committee, Rep. John B. Larson (CT-01) questioned IRS Commissioner Danny Werfel on the impact of new funding Democrats secured in the Inflation Reduction Act to improve customer service and hold wealthy tax cheats accountable, and how Republican plans to gut IRS funding would hinder the agency’s operations.

You can view Rep. Larson's remarks here.

“We were very much alarmed when the House voted to cut funding to the IRS – what kind of an impact would a cut like that have, especially at this time when we are concerned about the federal deficit – what kind of a cut would that have?” Larson asked Commissioner Werfel. 

“The people who suffer are taxpayers,” Werfel responded. “They suffer because the tax laws still exist. They still have these responsibilities, and it’s a stressful experience, and when a problem emerges, they can’t get clarity from the IRS. If they can’t get through to us, if they can’t get their tax issue resolved, it weighs on them, it’s burdensome for them, and it’s stressful for them. And that’s what’s so heartbreaking about an underfunded tax agency—it means we’re not answering the phones, it means our walk-in centers are shuttered, and it means that our digital tools are stagnating. That’s what it means when you describe ‘let’s pull back the IRS funding!’ It means that the IRS won’t be able to function and help you, and if you’re not pulling back the tax laws and the tax responsibilities, but you’re pulling back the ability for the IRS to serve taxpayers, then the ultimate harm is to the taxpayers themselves, and that’s my impassioned plea to make sure that we don’t harm taxpayers by making it harder for the IRS to help them.” 

Because of the Inflation Reduction Act, new services are available to taxpayers this filing season, including a customer callback option for 95% of callers seeking live assistance, more in-person services at Taxpayer Assistance Centers, and an online portal for small businesses to file Form 1099 returns electronically. Additionally, the IRS has collected than $500 million from roughly 1,600 wealthy tax evaders. 

House Republicans recently voted to cut funding from the IRS, which would limit services available to taxpayers and hinder the agency’s ability to go after wealthy tax cheats and fraudsters.