The IRS received a significant funding increase through the Inflation Reduction Act of 2022. This led to speculation about a sudden surge in audit activities. Many wondered, “When will the IRS army of auditors hit the warpath?” However, the actual plan for deploying these resources suggests a more measured approach by the IRS.
The Funding Context
The IRS’s additional $80 billion plans extend beyond just increasing enforcement. This funding is also earmarked for upgrading technology and improving taxpayer services. The aim is to make the IRS more efficient and responsive rather than merely more aggressive.
Recruitment and Training
Integrating new auditors into the IRS is a structured process. It begins with the challenge of recruitment. Finding the right candidates is not quick or easy. Once hired, these new auditors go through extensive training. They must master the complexities of tax law, ethical auditing practices, and the use of sophisticated technological tools.
Phased Deployment
Auditors are not deployed abruptly. Recruits start their careers by handling simpler cases under the supervision of seasoned auditors. This integration ensures they are fully prepared before they tackle more complex audits.
Projected Timeline for Deployment
- Year 1-2 (2022-2023): The focus is on recruitment and training.
- Year 3 (2024): New auditors start with simpler audit cases.
- Year 4-5 (2025-2026): They begin to handle more complex audits as their experience increases.
- Year 6 and beyond (2027 onwards): Auditors are fully integrated and handle various audits.
Implications for Taxpayers
The gradual deployment of new auditors means there will be no immediate spike in audit activities. The IRS aims to improve the accuracy and efficiency of audits. Taxpayers can probably find better things to worry about rather than an oppressive audit increase.
Conclusion
The immediate “army of auditors” concept does not accurately reflect the IRS’s strategy or ability. Improving audit processes takes time. Personally, I would be happy if the IRS would just answer their phones
