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Yellen tells IRS not to use new funds to increase audit chances of Americans under $400,000

(CNN)Treasury Secretary Janet Yellen told the Internal Revenue Service on Wednesday that it would not use the new funds allocated toDemocrats. I instructed A new health and climate bill to increase the chances of Americans being audited if they make less than $400,000 a year, according to a copy of the letter obtained exclusively by CNN.

In a letter to IRS Commissioner Charles Rettig, the $80 billion the Inflation Reduction Act would give the IRS over the next decade would allow more middle-class Americans and small businesses to be audited. It was issued in the midst of an attack from the Republican Party. The Biden administration has repeatedly said the IRS will focus on stepping up crackdowns on wealthy taxpayers and large corporations, and will not target households earning less than $400,000 a year.

"Specific use additional resources, including new personnel and auditors hired, to increase the percentage of small businesses and households below the $400,000 threshold that are audited compared to past levels I instruct you not to use it,” Yellen wrote to Retig. “This means that small businesses or households making less than $400,000 a year will not be more likely to be audited despite misinformation from opponents of the law.”

Yellen Enforcement resources will instead "focus on high-level noncompliance," he said.

New IRS funding is projected to generate $124 billion in additional tax revenue over the next decade. It's an important way Democrats plan to offset the cost of plans to lower prescription drugs. Fighting costs and climate change.

The Democratic-controlled House of Representatives still has to approve the bill that passed the Senate onSundayafter months of painstaking negotiations. With the Senate majority remaining in his 50 seats, Democrats used a special no-filibuster process to approve a $750 billion health care, tax and climate bill without a Republican vote.

Rettig, who was appointed by former President Donald Trump to head his IRS, told lawmakers last week that low- and middle-income taxpayers would not be subject to increased crackdowns. He said better technology and customer service would make compliant taxpayers less likely to be audited.

The bill itself states that the new funding "is not intended to increase taxes on taxpayers or small businesses whose taxable income is less than $400,000."

But Republicans continue to vehemently oppose the new IRS funding, arguing for increased audits of middle-class Americans.

The Republican National Committee and Several Republicans, including House Majority Leader Kevin McCarthy and Texas Senator Ted Cruz, say the new funding will create 87,000 new IRS agents. But that number is misleading. The Treasury Department estimates that in 2021, her nearly $80 billion investment in the IRS will allow him to employ 86,852 full-time employees over the next decade. But this figure is for all workers, not just bailiffs. Rettig also told lawmakers that the IRS would need to hire 52,000 people over the next six years to maintain current staffing levels and replace those who have retired or otherwise left.

Clarification: This article has been updated to reflect Yellen's letter stating that businesses making less than her $400,000 a year are not more likely to be audited.