YELLEN TELLS IRS TO DEVELOP MODERNIZATION PLAN IN 6 MONTHS

Now that President Joe Biden signed Democrats' expansive climate, tax, and health care bill into law, Treasury Secretary Janet Yellen has directed the IRS to develop a plan within six months outlining how the tax agency will overhaul its technology, and customer service and hiring processes.

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In part, the improvements are meant to "end the two-tiered tax system, where most Americans pay what they owe, but those at the top of the distribution often do not" Yellen said in a memo to IRS Commissioner Chuck Rettig, whose term ends in three months.

Yellen's memo outlines the importance of modernizing IRS computer systems and ensuring the agency has an adequately-staffed workforce now that the tax collector is set to receive nearly $80 billion over the next 10 years.

That funding is needed for more than technology. At least 50,000 IRS employees are expected to retire over the next five years.