The clock is ticking. Congress has until late December to fund the federal government. While that is expected to happen, perhaps with stop-gap legislation, the Internal Revenue Service is running out of enforcement money.
Due to language in the current law when it comes to federal spending, about $20 billion of the IRS’s remaining enforcement budget is now frozen.
Download the SAN app today to stay up-to-date with Unbiased. Straight Facts™.
Point phone camera here
The Treasury Department is sounding the alarm. Deputy Secretary Wally Adeyemo said this week that without the money, there would be 6,000 fewer audits of high-income people and 2,000 fewer audits of large corporations. In addition, a hiring freeze is possible.
When Democrats controlled the House, Senate and White House, they passed the Inflation Reduction Act. The massive spending bill included close to $80 billion for the IRS, on top of the agency’s annual budget.
Many Republicans cried foul and called the beefed-up enforcement government intrusion. When the GOP took control of the House last year, by a narrow margin, it was able to repeal billions of dollars in money for the IRS in budget cutting, as well as a debt ceiling deal with the Biden administration.
With Republicans taking charge of the White House, Senate and House this upcoming January – and talk of major policy changes – negotiations between now and when the current funding bill ends on Dec. 20 could have a big impact on the IRS and its manpower going forward.
