WASHINGTON (NEXSTAR) – Problems with the Internal Revenue Service means tax season is getting more and more difficult. Now lawmakers are looking at ways to fix the agency’s issues.
A massive backlog of millions of tax filings is plaguing the IRS. Rep. Gerry Connolly led a hearing on Thursday to discuss the ongoing issues.
“As we head into this year’s tax season, the IRS often finds itself gasping for air,” Connolly, D-Va., said.
Rep. Katie Porter, D-Calif., says the delay hurts Americans.
“This is not an abstract issue. Families need their tax refunds to pay their rent. Small businesses need their refunds to keep their doors open,” Porter said.
IRS Commissioner Charles Rettig says the agency is simply understaffed and underfunded.
“Our operation support is down $100 million. That’s real money,” Rettig said.
Republicans and Democrats have very different ideas about how to solve the problems.
Many Democratic lawmakers want to give the IRS more money.
“One no brainer is to support the $80 billion investment in the IRS within President [Joe] Biden’s Made in America tax plan,” Connolly said.
However, Republicans like Rep. Jody Hice of Georgia, are against funneling money into an agency they think lacks oversight.
“Absolutely no. Republicans are not willing to simply give the IRS more money on a long term basis without any accountability,” Hice said.
Rep. Andrew Clyde, R-Ga., is advocating for even more drastic measures.
“It’s time we reform the system and eliminate the IRS once and for all,” Clyde said.
Some argue putting more resources into the IRS would mean ultimately earning more in tax revenue.
“Every dollar invested in enforcement would return 5 additional dollars in additional revenue collected,” Porter said.