The agency said it would need to undertake awareness campaigns to promote new affordability tax credits to families and health tax credits to small businesses. Changes to the tax code will also necessitate greater staffing of call centers and building online self-help tools, the agency said.
Rep. Charles Boustany, R-La., a member of the Ways and Means Committee, said any expansion of the tax agency as part of health reform amounts to greater incursion into citizens' lives.
"The legislation envisions the IRS having a central role in administering a new national health insurance system and enforcing its rules," he said in a statement.
President Obama's budget for FY 2011 gives a $450 million increase for the IRS and describes the agency's $8 billion allocation for enforcement and modernization programs to support "significant new revenue-generating initiatives that will target critical areas of non-compliance."
Of the nearly 199 million income tax returns filed with the IRS last year, more than 1.5 million -- or just below 1 percent -- were reviewed by agency auditors.