Bill Overview
Title: IRS PRIORITIES Act of 2022
Description: This bill prohibits the Internal Revenue Service from hiring new enforcement personnel (i.e., special agents in the criminal investigation division, revenue officers, or revenue agents) until all individual tax returns for 2019 and 2020 are processed.
Sponsors: Rep. Westerman, Bruce [R-AR-4]
Target Audience
Population: Individuals who filed U.S. tax returns for 2019 and 2020
Estimated Size: 150000000
- The bill focuses on IRS staffing and the processing of tax returns for 2019 and 2020.
- There are millions of individual taxpayers in the United States who filed tax returns in both 2019 and 2020 who would be directly affected by how quickly their returns are processed.
- The IRS had staffing challenges which may have contributed to delays in processing tax returns for those years, especially with the added workload due to COVID-19 related tax changes.
- The global population impact is limited since the focus is specifically on U.S. tax returns and the IRS, thus affecting mainly U.S. taxpayers.
Reasoning
- The focus of this policy is on taxpayers who are waiting for their tax returns from 2019 and 2020 to be processed. Delays in tax return processing can affect individuals' financial planning and wellbeing.
- The Cantril wellbeing score, ranging from 0 to 10, is a self-reported measure of how individuals feel about their life. A delay in receiving tax returns might cause stress, especially for those relying on refunds for financial relief.
- The policy would likely have a greater impact on individuals who rely on timely tax refunds or who are experiencing financial strain.
- Some individuals may not see any immediate impact from this policy if they are not reliant on timely tax refund processing.
Simulated Interviews
Small Business Owner (California)
Age: 35 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- This delay in tax processing is making it really tough on cash flow in my business.
- I hope this policy can at least speed things up a bit.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Software Engineer (Texas)
Age: 28 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- I file my taxes on time, but I'm not really affected much by delays.
- It's good they're trying to address the backlogs though.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Teacher (New York)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 20/20
Statement of Opinion:
- I struggle to budget properly with these delays.
- This policy seems like a good step, but it's about time something was done.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Retiree (Florida)
Age: 59 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 18/20
Statement of Opinion:
- I'm not reliant on returns, but I know people are waiting on them.
- Processing should be more efficient regardless.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Healthcare Worker (Illinois)
Age: 40 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- I really need my refund to help catch up on bills.
- I'm hopeful about this policy, but results need to happen soon.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 3 |
Manufacturing Worker (Ohio)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 14/20
Statement of Opinion:
- I've only had minor delays, not affecting me much.
- Seems like a reasonable approach to handling backlogs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Freelancer (Washington)
Age: 32 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 16/20
Statement of Opinion:
- It's exhausting worrying about when refunds will finally come.
- A focused policy is necessary to get through these backlogs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Retail Worker (North Carolina)
Age: 29 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 19/20
Statement of Opinion:
- The IRS processing speed doesn't really impact me much.
- Still, it's positive that delays are being tackled.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Consultant (Oregon)
Age: 61 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- It's frustrating not knowing the status of my returns.
- This policy might speed things up, sounds promising.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Project Manager (Georgia)
Age: 47 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 17/20
Statement of Opinion:
- I'm managing without the refund but it'd be nice to get it sorted.
- If this helps clear the backlog, then it's worth it.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $10000000 (Low: $5000000, High: $20000000)
Year 2: $12000000 (Low: $6000000, High: $24000000)
Year 3: $14000000 (Low: $7000000, High: $28000000)
Year 5: $16000000 (Low: $8000000, High: $32000000)
Year 10: $20000000 (Low: $10000000, High: $40000000)
Year 100: $50000000 (Low: $25000000, High: $100000000)
Key Considerations
- IRS processing capabilities need immediate improvements to handle backlog efficiently without additional enforcement hires.
- Short-term savings from halted hiring might not offset long-term revenue losses due to reduced enforcement capabilities.
- The bill could positively affect public perception and trust in the IRS by prioritizing processing backlogs affecting taxpayer refunds and issues.