Can We Trust the IRS to Play Fair?

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    Tada Images / shutterstock.com
    Tada Images / shutterstock.com

    President Biden’s nominee for Inspector General for Tax Administration (TIGTA), David Johnson, recently faced the Senate Finance Committee with a laundry list of promises. Chief among them: investigating politically motivated audits and ensuring small businesses aren’t unfairly targeted. Sure, it sounds noble—but how often do these grandiose pledges amount to anything more than lip service?

    Senator Ron Wyden (D-OR) didn’t waste time throwing Johnson into the deep end, demanding answers about the IRS’s alleged political targeting. Johnson, to his credit, didn’t flinch. He promised to investigate any abuses thoroughly, calling such practices “an extreme level of abuse.” Strong words, but considering the government’s stellar track record of accountability (spoiler: it’s not), who knows if this will go anywhere.

    Then there’s the IRS’s cozy little relationship with small businesses—cozy like a boa constrictor. Senator Marsha Blackburn (R-TN) pointed out that despite Treasury Secretary Janet Yellen’s 2022 promise not to increase audits on small businesses or lower-income households, her constituents are still bracing for impact. It turns out that the IRS hasn’t even bothered to define what counts as a “small business.” So, while they argue over definitions, small business owners are left sweating bullets, wondering if their modest incomes make them the next IRS target.

    The kicker? A recent TIGTA report shows the IRS has a long way to go before it can even pretend to meet its promises by 2025. Sure, they claim they’re focusing on high-income earners and corporations, but when it comes to small businesses, the message is clear: trust us—just ignore the thousands of shiny new agents we’ve hired with Biden’s $80 billion IRS budget boost.

    Johnson assured everyone he’ll follow up and keep Congress and the public in the loop. But let’s be real: assurances are a dime a dozen. Small businesses are still waiting to see if Johnson is the real deal or just another cog in the political theater machine. And honestly? The IRS doesn’t exactly have a stellar reputation to fall back on.