Rettig pledges major increase in IRS enforcement

IRS Commissioner Charles Rettig pledged to use increased funding to double compliance efforts on partnerships and high-wealth returns and devote more resources to examining corporations with balance sheets assets greater than $10 million. The comments came at a Senate Finance Committee hearing on IRS funding.

The IRS received $12 billion in funding from Congress in fiscal year 2021 and President Joe Biden is proposing to allocate $13.2 billion in fiscal year 2022. The Treasury “Green Book” also proposes to raise nearly $800 billion from increased enforcement and a new information reporting proposal. While these additional efforts may prove controversial, it is clear that IRS enforcement will increase for large corporation, partnerships, and high-net-worth individuals in the coming years. Rettig has asked for direct-hire authority to recruit thousands of experienced private sector tax specialists “who would be immediately impactful” to the IRS.


Tax professional standards statement

This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.


More tax hot topics