5 Things Holding Innovation Back at the IRS Published January 3, 2023

Believe it or not, the IRS has some budget and the will to modernize in the interest of public service.

Frustration with the IRS—it’s practically an American tradition. But now, thanks to the Inflation Reduction Act, the infamously hamstrung institution has been promised $80 billion over the next decade. The range of responses elicited by this decision make it clear that many of us are struggling to sort out what this realistically means for our families when filing season rolls around.  

While the institution plans to use these funds to modernize its infrastructure, better target audits, increase tax collection from corporations and high-income individuals, and improve customer service offerings, this windfall won’t immediately fix all of the IRS’s core issues. The truth of the matter is that the IRS’s internal environment, policies and legislation have long impacted its ability to operate smoothly.