Aug 11, 2022 - Economy & Business

Yellen tells IRS not to increase number of audits for middle class

US Treasury Secretary Janet Yellen speaks on the economy.
Treasury Secretary Janet Yellen speaks from Washington, D.C. Photo: Saul Loeb/AFP via Getty Images

Treasury Secretary Janet Yellen told the Internal Revenue Service in a letter Wednesday to avoid using any new funding from the Democrats' new health care and climate bill to increase the number of audits for middle-class Americans.

The big picture: Yellen's letter follows GOP charges that the Inflation Reduction Act, which adds about $80 billion to the IRS' budget over 10 years, will cause more audits for the middle class.

What she said: Yellen told IRS Commissioner Charles Rettig in a letter that any new personnel or auditors hired should not be used to increase the number of audits for small businesses or American households making less than $400,000 per year.

  • "This means that, contrary to the misinformation from opponents of this legislation, small business or households earning $400,000 per year or less will not see an increase in the chances that they are audited," she said in the letter.

What's next: The Democrat-controlled House still needs to approve the legislation, which passed the Senate last weekend.

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