New Delhi

Internal Revenue Service (IRS) Commissioner Danny Werfel announced on Monday that the agency's intention to expand its workforce to over 100,000 employees within the next three years to achieve modernisation, service, and enforcement objectives.

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Werfel, marking his first anniversary in the IRS' top position, emphasised the need for additional funding to sustain this increased capacity.

He stated that the near-term focus of hiring would prioritise enhancing taxpayer services and managing complex audits.

The IRS is set to unveil detailed hiring plans next month as part of its strategic operating plan, utilising approximately $60 billion in supplemental funding allocated from the 2022 Inflation Reduction Act.

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Currently employing around 90,000 individuals, Werfel projected the need to surpass 100,000 employees over the next two to three years to align with the agency's objectives.

This expansion represents a substantial increase of over 20,000 full-time-equivalent staff compared to the fiscal 2022 level of 79,070.

Despite accusations from Republicans suggesting the IRS was building an "army" of 87,000 agents, Werfel clarified that the actual staffing increase would be considerably less.

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He highlighted the necessity of overcoming previous budget cuts and rebuilding the workforce to effectively carry out the agency's duties.

While President Joe Biden's fiscal 2025 proposed budget includes a request for an additional $104 billion in IRS funding, negotiations have resulted in a reduction of the original $80 billion funds to $60 billion.

Werfel expressed concerns regarding potential disruptions for taxpayers, particularly amid ongoing negotiations and the looming tax filing season.

Regardless of the funding adjustments, Werfel assured that the IRS would continue making investments in technology to enhance its operations.

However, he stressed the importance of securing adequate funding to sustain the agency's workforce and support ongoing initiatives, including sophisticated audits and technology upgrades.

As discussions continue regarding future funding allocations, Werfel puts the spotlight on the necessity of maintaining sufficient resources to prevent capacity limitations and ensure the IRS can effectively carry out its duties.

He warned of potential consequences if funding falls short, indicating that without adequate support, the agency may face challenges in pursuing its modernisation goals.

With ongoing negotiations and potential adjustments to funding, the IRS remains focused on balancing operational needs with fiscal constraints to uphold its responsibilities to taxpayers.

(With inputs from Reuters)