Irs Payments
The Hidden Complexities of IRS Payments: A Critical Examination The U.
S.
tax system, administered by the Internal Revenue Service (IRS), is a labyrinthine structure designed to fund federal programs while enforcing compliance.
Yet, beneath its seemingly straightforward façade lies a web of complexities delayed refunds, aggressive enforcement, systemic inequities, and bureaucratic inefficiencies.
Each year, millions of taxpayers navigate this system, often encountering unexpected hurdles that disproportionately affect low-income filers, small businesses, and marginalized communities.
Thesis Statement While the IRS serves as the backbone of federal revenue collection, its payment and enforcement mechanisms reveal systemic flaws ranging from inequitable audit targeting to technological shortcomings that undermine public trust and exacerbate financial strain on vulnerable populations.
Evidence of Systemic Inequities 1.
Audit Disparities A 2021 study by the Treasury Inspector General for Tax Administration (TIGTA) found that low-income taxpayers claiming the Earned Income Tax Credit (EITC) are audited at higher rates than wealthier individuals.
This disparity stems from the IRS’s reliance on automated systems that flag errors in simpler returns (EITC claims) rather than pursuing complex evasion tactics used by high-net-worth individuals (ProPublica, 2021).
2.
Delayed Refunds and Processing Backlogs The IRS struggled with a backlog of 30 million unprocessed returns in 2022 due to outdated technology and underfunding (GAO, 2022).
Low-income taxpayers relying on refunds for essential expenses faced severe delays, while those unable to afford professional tax prep services were more likely to make errors triggering audits.
3.
Predatory Enforcement A 2022 report by the National Taxpayer Advocate revealed that IRS collection tactics such as liens and levies disproportionately target taxpayers earning under $50,000, while corporations and high-wealth individuals exploit loopholes (NTA, 2022).
For example, a 2023 Congressional Budget Office analysis found that 28% of unpaid taxes stem from pass-through entities and offshore accounts, yet enforcement resources remain skewed toward wage earners.
Technological and Structural Barriers - The IRS’s 60-year-old IT infrastructure struggles with fraud detection, processing delays, and cybersecurity risks (TIGTA, 2023).
- Free filing options like IRS Free File are underutilized due to lack of awareness, while private tax prep companies lobby against simplification (IRS, 2023).
Critical Perspectives Proponents argue that IRS funding increases (like the $80 billion allocated under the Inflation Reduction Act) will modernize systems and close the $600 billion tax gap (U.
S.
Treasury, 2023).
Critics, however, contend that without structural reforms such as shifting audit focus to high-income evasion the system will remain regressive (Saez & Zucman, 2019).
Conclusion The IRS payment system reflects broader inequities in U.
S.
fiscal policy.
While underfunding and outdated technology contribute to inefficiencies, the agency’s enforcement priorities perpetuate economic disparities.
Reforms must address both structural barriers and biased auditing to restore fairness.
As debates over IRS funding intensify, the stakes extend beyond revenue collection they implicate the very credibility of the government’s contract with taxpayers.
References - GAO.
(2022).
Government Accountability Office.
- ProPublica.
(2021).
.
- National Taxpayer Advocate.
(2022).
- Saez, E., & Zucman, G.
(2019).
W.
W.
Norton.