Former IRS whistleblower says government will target middle class under Dems inflation law: It’s ‘bulls–t’ – Fox Business | Vette Leader

William Henck, a former Internal Revenue Service (IRS) attorney who was forced out of office after allegations of internal misconduct, said the government will target middle-income Americans with new tests under the Inflation Reduction Act.

Henck, who worked at the IRS for 30 years until leaving in 2017, slammed the IRS and others who argued that additional funding would only result in increased scrutiny for billionaires and corporations. The anti-inflation bill that President Biden is scheduled to enact this week would nearly double the IRS’s budget and give the agency an additional $79 billion over the next decade.

“The idea that they’re going to open things up and go after these big billionaires and big corporations is frankly bullshit,” Henck said in an interview with FOX Business. “That will not happen. You’ll get bonuses and promotions and really nice conferences.”

“The big corporations and the billionaires are probably sitting back and laughing right now,” he continued.

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President Biden is scheduled to sign the Inflation Reduction Act on Tuesday. (Doug Mills/Pool/Sipa | Samuel Corum/Bloomberg)

Henck added that he thinks it would be “crazy” to double the agency’s budget. He said the IRS will target companies that don’t have enough money to hire Washington lobbyists.

Americans with annual incomes of less than $75,000 would be subject to nearly 711,000 new IRS audits under the legislation, according to a House GOP analysis using historical audit rates. In comparison, people earning more than $500,000 receive about 95,000 additional checks because of the Inflation Reduction Act.

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IRS Commissioner Charles Rettig, however, dismissed reports of new audits, saying the “audit rates” would remain the same and that the bill “is absolutely not about auditing small businesses or middle-income Americans.” to reinforce”. White House press secretary Karine Jean-Pierre told reporters last week that there will be no new audits for people making less than $400,000 a year.

“There will be significant incentive to basically throw off taxpayers, and the advantage of the IRS is that they have basically unlimited resources and no accountability, while a taxpayer has to weigh the cost of accountants and tax attorneys — and somewhat before that.” Finance court must fight.” Henck told FOX Business.

Joe Manchin

Sen. Joe Manchin, DW.Va., was a major sponsor of the Inflation Reduction Act, which he introduced in late July after months of closed-door negotiations. (Brendan Smialowski/AFP via Getty Images/Getty Images)

New hires to the IRS are also assigned easier cases, Henck said, which means additional focus on small business audits.

“If you own a roofing company, you better count on getting audited because they will,” he continued. “They’re going to target your car dealerships and roofing companies.”

Henck said during his time at the agency he observed that IRS agents specifically targeted elderly taxpayers, some of whom were World War II veterans, because they could easily be coerced into settlements.

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“I protested both internally and externally, but I was ignored,” he told FOX Business. “In their last days on earth, these taxpayers were bullied by the same government they fought for as young men, and no one cared.”

“This is the agency that will double in size.”

In 2013, Henck told the Washington Post that the IRS team he hired to provide legal advice was ordered by senior officials to “resign” while investigating a paper company using a biofuel tax credit. Henck, who believed the loan was taxable, said the company did not list the loan as taxable income on its returns, an issue his team identified as a potential problem.

Other paper companies quickly filed refund requests after the IRS dropped its investigation into the company’s tax credit classification, Henck added. As a result, the federal government paid out $8 billion to paper companies in 2009 amid the financial crisis, the Washington Post reported at the time.

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The IRS then launched an investigation into Henck for allegedly divulging sensitive information when speaking to the media in 2013, leading to his termination in 2017.

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