A new analysis by the Department of the Treasury and Internal Revenue Service estimates that deploying Inflation Reduction Act resources or implementing IRA investments to help the IRS modernize the U.S. tax ecosystem and deliver better customer service to taxpayers will result in approximately $561 billion in revenue between fiscal years 2024 and 2034.
Estimated revenue would reach up to $851 billion over the next decade if the IRA investment is sustained or IRA funding is renewed, the Treasury said Tuesday.
“IT modernization offers a wide array of potential revenue benefits. [E]xpanded data intake capacity and productivity will help increase compliance; improved audit selection and collection planning can increase the productivity of enforcement activities,” the analysis reads.
According to the study, repealing or rescinding investments in the IRS by about $20 billion would result in over $100 billion reduction in revenues.
The Treasury noted that the new estimates in the report reflect the benefits of data analytics, technology adoption and service and the impact of deterrence on wealthy taxpayers who underwent audits.
