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IRS needs to be “totally rebuilt,” according to Yellen of the US Treasury

Treasury Secretary Janet Yellen said Wednesday that the IRS needs to be “completely redone” as the agency struggles to keep up with the complexity of the U.S. tax system.

In remarks at a press briefing, Yellen noted that the IRS has been underfunded for many years, making it harder to enforce tax laws and keep up with technological advances.

“I think it’s time for us to completely redo the IRS,” Yellen said. “It needs to have the capacity, the technology, the people, the expertise to enforce our tax laws and make sure that people are paying their taxes.”

Yellen also called for more taxpayer protections and measures to prevent fraud and identity theft. She said the agency needs to be modernized and better equipped to handle the complexities of the U.S. tax system.

Yellen’s comments come as Congress is debating proposals to overhaul the tax code and provide more funding to the IRS. The Biden administration has proposed a $80 billion increase in the IRS budget over the next decade.