Reuters: If the Inflation Reduction Act becomes law, Treasury Secretary Janet Yellen told the IRS on Wednesday that extra resources should not be used to look into taxpayers who make less than $400,000 a year.
The plan, which passed the Senate without Republican backing over the weekend, boosts the IRS budget by $80 billion over 10 years.
Democrats say increasing IRS enforcement will enhance tax collection and help pay for the $430 billion measure, which addresses climate change and cuts prescription drug prices.
Republicans have questioned the IRS’s tax enforcement efforts, suggesting the agency will target middle-class people.
In a letter made public by the Treasury Department, Yellen told IRS Commissioner Charles Rettig that any new IRS workers “must not be used to audit more small businesses or homes under $400,000 than in the past.”
The Treasury Department’s IRS.
Yellen: “Contrary to opponents’ claims, small businesses and households earning $400,000 or less won’t be audited more often.”
The House will vote on it Friday. Biden says he’ll sign it.
