The Treasury Inspector General for Tax Administration (TIGTA) is closely watching the $1.2 billion of the approximate $1.8 billion the IRS will receive as part of the American Rescue Plan Act (ARPA). The funds are part of the series of COVID 19-related relief and economic stimulus relief, for which the IRS will use about $200 million to administer the issuance of Child Tax Credits and Economic Impact Payments, and $1 billion to modernize infrastructure, security, data, and workforce to modernize the IRS’ IT.
While such modernization will enable the IRS to address these crucial areas, the short deadline to use funds could impact the IT organization’s ability to effectively use all of the ARPA funding.
With this additional funding, the IRS is going to reallocate $400 million previously slotted for modernization efforts to help with the taxpayer service backlog and to address the shortfall in operations.
Read about it all here.