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![irs tax audit definition irs audit Biden increase tax compliance costs and tax enforcement tax gap discussion IRS commissioner](https://taxfoundation.org/wp-content/uploads/2021/08/increasing-tax-compliance-costs-tax-gap-discussion-income-tax-filing-refund-e1630076429782-300x200.jpeg)
![gift tax definition gift taxes credit union exemption, credit union tax exemption](https://taxfoundation.org/wp-content/uploads/2019/10/money-dollar-funding-saving-finance-e1570813455951-300x166.jpg)
![IRS budget increase IRS technology modernization and IRS funding for IRS e-filing electronic tax filing](https://taxfoundation.org/wp-content/uploads/2022/08/IRS-budget-increase-IRS-technology-modernization-and-IRS-funding-for-e-filing-min-e1661538290807-300x200.jpeg)
IRS Is Raising More with Less, But New Funding Misses the Mark
The Inflation Reduction Act focused more on enforcement and hiring more auditors rather than programs that make it easier for taxpayers to comply with the code and the IRS to administer it.
6 min read![Tax compliance costs of IRS regulations tax complexity and tax simplification Chaotic IRS filing season shows flaws in IRS benefits distribution, IRS tax credit administration, IRS budget, and 2022 tax season with filing taxes Summary of the Latest Federal Income Tax Data, 2022 Update 2022 federal income tax data](https://taxfoundation.org/wp-content/uploads/2022/01/tax-filing-calculator-e1642614911929-300x200.jpeg)
The Tax Compliance Costs of IRS Regulations
In a pattern that has become all too common in recent decades, the newly enacted Inflation Reduction Act (IRA) added yet another layer of complexity to an already complex and burdensome federal tax code.
9 min read![IRS budget increase IRS technology modernization and IRS funding for IRS e-filing electronic tax filing](https://taxfoundation.org/wp-content/uploads/2022/08/IRS-budget-increase-IRS-technology-modernization-and-IRS-funding-for-e-filing-min-e1661538290807-300x200.jpeg)
IRS Funding and Technology
The Internal Revenue Service (IRS) finds itself under fire often. Outdated technology, millions of unanswered calls, and cafeterias full of paper returns—it’s clear that America’s tax collector needs improvement. Jesse is joined by Courtney Kay-Decker and Jared Ballew, chair and vice chair (respectively) of the Electronic Tax Administration Advisory Committee (ETAAC). They discuss ETAAC’s annual report that lays out what the IRS is doing right, and what it’s doing wrong, as the agency continues to see its duties grow.
![IRS tax enforcement provisions to increase IRS budget and IRS funding See more on IRS expansion and Inflation Reduction Act IRS details](https://taxfoundation.org/wp-content/uploads/2022/08/IRS-tax-enforcement-and-administration-e1660748636255-300x200.jpeg)
How to Think About IRS Tax Enforcement Provisions in the Inflation Reduction Act
The Inflation Reduction Act increases the IRS’s budget by roughly $80 billion over 10 years. The money is broken into four main categories—enforcement, operations support, business system modernization, and taxpayer services—as well as a few other small items such as an exploratory study on the potential of a free-file system.
6 min read![Do tax increases reduce inflation. See higher taxes inflation policies and cause for inflation amid looming recession](https://taxfoundation.org/wp-content/uploads/2022/07/dc-us-capitol-building-e1658857063614-300x204.jpeg)
Push for Higher Taxes Is Misguided During a Time of Inflation and Looming Recession
Some 40 years ago, the U.S. dealt with high inflation and slow economic growth. Then as now, the solution is a long-term focus on stronger economic growth and sustainable federal budgets.
5 min read![Technology](https://taxfoundation.org/wp-content/uploads/2017/04/636048910501758527-1779617825_technology-e1529342654944-300x200.jpg)
Technology and Taxes
From policy to filing, from accounting to compliance: technology is truly shaping the future of taxes. We chat with Ben Alarie, CEO of Blue J, about how companies are utilizing technology to comply with the tax code and how policymakers can use technology to advance tax laws that support an ever-evolving economy.
![](https://taxfoundation.org/wp-content/uploads/2022/07/SourcesOfIncome_fig_2-300x212.png)
Sources of Personal Income, Tax Year 2019
Reviewing reported income helps to understand the composition of the federal government’s revenue base and how Americans earn their taxable income. The individual income tax, the federal government’s largest source of revenue, is largely a tax on labor.
10 min read![Republican budget tax proposals RSC budget Republican Study Committee budget House Democrats tax increases in historical context Build Back Better Act Federal tax expenditures CARES Act Weighing the Benefits of Permitting Business Credit Cashouts in Phase 4 Economic Relief](https://taxfoundation.org/wp-content/uploads/2020/06/linkedin-In-Stream_Wide___capitol-blue-sky-e1592343347527-300x158.jpeg)
Pro-Growth Tax Reforms Throughout the Republican Study Committee’s FY 2023 Budget
The United States needs to grow its way out of inflation and set the economy up for continued growth—the tax code provides tools for policymakers to do just that.
3 min read![Biden tax compliance plan to improve IRS funding and tax enforcement to improve tax collection](https://taxfoundation.org/wp-content/uploads/2021/08/Increasing-IRS-tax-enforcement-and-improving-tax-collection.-Learn-more-about-Biden-IRS-enforcement-and-funding-proposals-and-potential-tax-compliance-costs-for-taxpayers-e1629310385172-300x200.jpeg)
Tax Filing Season: Options for Improvement
Efforts to improve the taxpayer experience should focus on the IRS’s operations and include structural improvements to the tax code.
4 min read![Tax compliance costs of IRS regulations tax complexity and tax simplification Chaotic IRS filing season shows flaws in IRS benefits distribution, IRS tax credit administration, IRS budget, and 2022 tax season with filing taxes Summary of the Latest Federal Income Tax Data, 2022 Update 2022 federal income tax data](https://taxfoundation.org/wp-content/uploads/2022/01/tax-filing-calculator-e1642614911929-300x200.jpeg)
Chaotic IRS Filing Season Shows the Perils of Running Social Policy Through the Tax Code
As the deadline for tax filing nears, the IRS faces scrutiny for its backlog of returns, inaccessible taxpayer service, and delays in issuing certain refunds.
5 min read![Biden tax plan and analysis of Biden taxes Biden minimum tax on billionaires unrealized capital gains tax Biden tax proposals Biden taxes Biden tax plan Build Back Better inflation tax Biden inflation tax Top Tax Rate on Personal Income Would Be Highest in OECD under New Build Back Better Framework](https://taxfoundation.org/wp-content/uploads/2021/10/Washington-DC-White-House-skyline-e1634657027264-300x200.jpeg)
Proposed Minimum Tax on Billionaire Capital Gains Takes Tax Code in Wrong Direction
Biden’s proposal would impose a complicated never been tried before tax, adding new compliance and administrative challenges for an already overburdened IRS while weakening the U.S. economy by raising the tax burden on U.S. saving and entrepreneurship.
6 min read![Biden tax compliance plan to improve IRS funding and tax enforcement to improve tax collection](https://taxfoundation.org/wp-content/uploads/2021/08/Increasing-IRS-tax-enforcement-and-improving-tax-collection.-Learn-more-about-Biden-IRS-enforcement-and-funding-proposals-and-potential-tax-compliance-costs-for-taxpayers-e1629310385172-300x200.jpeg)
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The Child Tax Credit Score
The expanded Child Tax Credit from the American Rescue Plan was touted as a once-in-a-lifetime achievement toward reducing child poverty. But it was passed as a temporary tax measure. Temporary tax policy makes tax filing confusing, and the IRS has shown that it isn’t able to keep pace with being a social administrator and a tax collector. We discuss what taxpayers need to know about the ever-changing Child Tax Credit and how it may impact taxpayers this spring.
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Business Tax Refunds Must Be Provided Quickly During Future Downturns
A new report finds many businesses have yet to receive tax refunds that they are due from pandemic-related emergency relief. Future business tax relief must be provided in a timely manner during the next downturn, because delayed tax relief is not much better than no relief at all.
2 min read![Who Benefits from Itemized Deductions? High income taxpayers tax breaks](https://taxfoundation.org/wp-content/uploads/2019/03/Tax-Filing-Individual-e1551986717705-300x200.jpeg)
Tax Season’s Greetings
The 2022 tax filing season is about to begin. With expected delays, pandemic-related troubles, and a backlog of over 8 million unprocessed returns from the 2021 tax filing season, Garrett Watson joins Jesse Solis to discuss what all these troubles will mean for taxpayers in what is shaping up to be a chaotic spring.
![2022 tax filing season IRS backlog federal deductibility Biden increase tax compliance costs and tax enforcement tax gap discussion IRS commissioner](https://taxfoundation.org/wp-content/uploads/2021/08/increasing_tax_compliance_costs_tax_gap_discussion_income_tax_filing_refund_optimized-e1630077994476-300x200.jpeg)
Bumpy Tax Filing Season Ahead Due to IRS Backlog and Pandemic Tax Relief
The National Taxpayer Advocate argued the IRS telephone service “was the worst it has ever been” in 2021, with an answer rate of about 11 percent.
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Business Tax Collections Within Historical Norm After Accounting for Pass-through Business Taxes
When looking at the tax burden on businesses over time, it is important to provide a complete picture by accounting for the different types of businesses in the U.S. and the timing effects of the 2017 tax law. Doing so provides important context on existing tax burdens and for considering the impact of raising taxes on corporations and pass-through firms.
3 min read![IRS reporting plan to require financial institutions to report inflows and outflows of bank accounts. IRS bank account proposal, IRS bank reporting, IRS audit bank account proposal from Biden Treasury, IRS reporting requirements](https://taxfoundation.org/wp-content/uploads/2021/10/Treasury-DC-e1634740803562-300x200.jpeg)
Proposal for Reporting Requirements for Financial Institutions Misses the Mark
Reducing the tax gap is a good idea, but the reporting requirements for financial institutions could be better-targeted at the problem at hand.
4 min read