For Better or For Werfel

A troubled marriage to come? Not so fast…

By now, you may have heard that Daniel Werfel has been nominated by President Joe Biden to lead the IRS and is expected to receive a full Senate vote. What you may not know is that he recently answered many questions during the Senate Finance Committee’s hearing which included integral key issues to those on both sides of the aisle.

What are his “vows” to you?

Werfel has vowed to not increase audit rates for small businesses and households that make under $400,000. This declaration comes after a noticeable 1.1% chance of an IRS audit for wealthy Americans which is in contrast to a slower decline for lower earners and Black Americans who are roughly 3 to 5 times more likely to face an IRS audit according to a recent study by Stanford University.

CNBC quotes Werfel as saying that poor people are less likely to be audited than the wealthy it “potentially degrades public trust and needs to be addressed within the tax system.”

As we wait for the vote on Werfel’s nomination, one thing has been made clear… Werfel is ready to jump head first, arms wide open into this “thankless” job, and has made it a top priority for Americans to regain trust in a “modern and high-performing IRS.” He even pledges to read a paper copy of the Taxpayers Bill of Rights every day if confirmed to the role to ensure his loyalty and dedication.

For more related information, please reach out to the Professionals at The Center for Financial, Legal, & Tax Planning Inc., at (618) 997-3436.