Bolstered by $80 Billion Budget Boost, IRS Will Expand Its Pursuit of Wealthy Tax Cheats, New Commissioner Says
The federal agency is using tools like artificial intelligence to ferret out abuses and taking the fight to sophisticated scammers.

WASHINGTON â The IRS commissioner, Danny Werfel, has a message for high-wealth tax cheats who are wrongly deducting private jet travel and otherwise shorting the government on their taxes: Pay your fair share so âothers arenât shouldering the burden of funding our government.â
He also has a thought for ordinary taxpayers putting off the inevitable with less than a month left in tax-filing season: âGet it done.â (And double-check your work.)
Mr. Werfel, who will hit the one-year mark at the helm of the IRS in April, said in a wide-ranging interview that the agency will expand its pursuit of high-wealth tax dodgers with new initiatives in the coming months and is using tools like artificial intelligence to ferret out abuses and taking the fight to sophisticated scammers.
That doesnât mean the IRS has undergone a complete image makeover. Thereâs still plenty of criticism to go around, including from Republican lawmakers who accuse the agency of heavy-handed overreach.
âWeâre kind of like the NFL referee â when we get the call right or wrong, we get booed, and weâre OK with that,â Mr. Werfel said.
Efforts to crack down on high-wealth tax cheats are starting to bite, he says, and that should mean more money coming in to fund the government.
âItâs having an impact,â Mr. Werfel said. Large corporate filers and others are âtaking notice that the IRS is ramping up our scrutiny, and I think that will inevitably result in more complianceâ â and revenue.
Mr. Werfel is promising taxpayers better service this year as he works to repair the agencyâs image as an outdated and maligned tax collector. Itâs a tall order for a federal agency that even he has referred to as âiconically unpopularâ with the American public.
âWe have some myth-busting to do,â Mr. Werfel said, referring to Republican claims that the agency plans to hire 87,000 armed agents ready to harass middle-income earners.
âWe are not,â he said. âWe are hiring phone assisters armed only with phone headsets. Weâre hiring accountants armed only with calculators.â
Mr. Werfel took over an agency that was understaffed and drowning in unprocessed tax returns after decades of underfunding.
Shortly before he arrived, the IRS received an $80 billion infusion under the Democratsâ Inflation Reduction Act passed in 2022. Republicans have been chipping away at that money.
Last yearâs debt ceiling and budget cuts deal between Republicans and the White House resulted in $1.4 billion rescinded from the agency and a separate agreement to take $20 billion from the IRS over the next two years and divert those funds to other programs.
And this past January, a debt ceiling deal meant to avoid a government shutdown frontloaded the full $20 billion cut to this year.
Mr. Werfel has been in a race against time to show how improvements to the agency can benefit taxpayers. He said agency priorities include customer service improvements like answering the phones faster and making sure the rich âpay their fair share.â
The agency also is piloting a program for people to file their taxes directly to the agency without the help â or cost â of private commercial software.
Mr. Werfel said more than 50,000 people in 12 states have started using the new Direct File system to complete their taxes. The free online tool is available for people with very simple W-2s and who claim a standard deduction for their federal income taxes.
The Direct File rollout has drawn some consternation from commercial software firms like Intuit, as well as Republicans who argue there are free filing programs that already exist.
So far, Mr. Werfel says, âpeople are telling us that they found it to be quick and easy, and everyone certainly loves that itâs free. And their No. 1 question is: Are we going to have this again next year?â
Mr. Werfel sounds optimistic, but heâs not ready to give an answer yet on the programâs future.
Overall, Mr. Werfel says, the agency has added âmore tools to IRS.gov in the last two years than in the previous 20â to make tax-filing easier. Wait times for answering phone calls are at two minutes or less.
Mr. Werfel sat for an interview in an auditorium at the IRS headquarters in Washington, where he said sustained funding is critical to make up for past shortcomings. He said IRS workers are âpassionate about helping taxpayers. And when we donât have the funding to provide them the tools or the training, theyâre upset because they canât do enough to help the taxpayers.â
Major new initiatives in recent months have included an aggressive pursuit of high-wealth earners who donât pay their full tax obligations, such as people who improperly deduct personal flights on corporate jets and those who just donât file at all.
The private jets, in particular, are a place where âmany corporations are sloppy with their bookkeeping,â he said. Mr. Werfel said the agencyâs crackdown there âsets the tone for the American peopleâ that everyone has to pay whatâs due.
Mr. Werfel said the agency also has put new focus on âbeing accessible, answering the phones, keeping our walking centers open and updating our website so that people can do things more with the IRS without ever leaving their smartphone or their tablet.â
Even so, he allows, the agency still isnât technologically where it needs to be. There is still an operating pay phone located in the hallway at the IRS building.
