IRS Funding Debate

About IRS Funding Debate

The Inflation Reduction Act of 2022 provided 80 billion in additional IRS funding over 10 years. The funding was intended to improve customer service, modernize technology, and increase enforcement against high income tax evaders. The Congressional Budget Office estimated the funding would raise 200 billion in additional revenue. The funding became politically contentious. Republicans characterized it as an army of 87,000 IRS agents targeting middle class families. In reality, the IRS workforce was expected to grow by approximately 87,000 over a decade, mostly replacing retiring employees. The first thing Republicans did after taking the House in 2023 was to vote to rescind the IRS funding. Subsequent negotiations reduced the funding by 20 billion. The IRS has used remaining funds to improve service and target large partnership and corporate audits.