Fedweek

A broader move to rescind the funding is planned for once Republicans take control of the House in January. Image: Tada Images/Shutterstock.com

In what amounts to an opening move for the new Congress by Republicans against the funding boost for the IRS enacted in the summer, a group of a dozen Senate Republicans has introduced a bill (S-5100) providing for additional scrutiny with a mechanism for cutting off that funding.

While the bill likely will not be actively considered in the few weeks remaining in the current Congress, an even broader move to rescind the funding already is planned once Republicans take control of the House in January. The Inflation Reduction Act, which passed along party lines, provided $80 billion above the previously assumed spending levels for the agency over 10 years.

Much of the attention on the law since then has focused on claims from many Republicans that the agency will double in size and harass average taxpayers, despite projections showing that the majority of potential hiring would be only to keep up with attrition and much of the rest would go toward addressing widely recognized needs for improvements in IT and customer service, in addition to enforcement.

The bill would require the IRS to provide Congress with an annual plan for how the agency intends to use the funds, which would be subject to disapproval by Congress. It also would require quarterly updates from the IRS and Treasury “to enable consistent and transparent evaluation of the plans, provide accountability for any misuse of funds, and guard against violations of taxpayer rights,” according to a summary by sponsors.

“Failure to submit timely and thorough plans or reports would result in financial penalties, including IRA funds being rescinded on a daily basis until the IRS complies with the reporting requirements,” it says.

Many of the same senators previously asked the GAO to report on steps the IRS has taken to address recommendations for the agency and further asked the inspector general at the IRS to produce a plan for overseeing the funding.

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