Knock knock: it’s the tax collector… In a win for everyone who won’t answer the door without an “I’m here” text, the Internal Revenue Service is halting its practice of sending agents to collect tax debts. They’ve knocked on tens of thousands of doors each year since the ’50s, but their visits are now going to be limited to the hundreds — summonses, subpoenas, and seizures only. Going forward, the agency says it’ll send letters requesting that overdue taxpayers schedule an office visit instead.
Safety first: The IRS wants to protect its employees, who’ve faced increasing threats. Getting agents off the sidewalk dovetails with the agency’s plan to become “digital first” (and could reduce scammers who pose as tax agents).
Death and (online) taxes… The Biden admin approved $80B for the IRS to “modernize” its agency over 10 years. Even though Republicans have wrangled that down by ~$21B, the cut’s not expected to affect the IRS’s immediate spending plans — which include updating its computer systems and using AI to analyze taxpayer data.
Big fish: The agency said it plans to use its new tech to crack down on high earners, adding that it won’t increase audits on households making under $400K. The IRS said that in recent months it’s collected $38M in tax debts from 175 high-income taxpayers.
Find coins in the couch first… because raising taxes is hard. After the Biden admin’s efforts to hike corporate and capital-gains taxes were met with opposition and scaled back, it’s focusing on existing IOUs. Read: scraping up money it left on the table (tax debts) as a workaround to seeking new revenue (raising taxes). It’s estimated the IRS could rake in an extra $200B over the next decade using its new tech and bulked-up budget.