Congress Cuts Additional $20 Billion from IRS Funding

The automatic reduction follows earlier budget agreements, jeopardizing audits of the wealthy and taxpayer services.

Congress removed another $20 billion from the IRS budget during last week's government shutdown negotiations, marking the second major cut to the agency since 2023.
The funding cuts stem from provisions in a 2023 budget deal that automatically carried over into the latest stopgap spending bill.
Biden administration officials warn the reductions will add $140 billion to the national debt over a decade by limiting the IRS's ability to audit corporations and wealthy individuals.
The IRS has reported significant improvements in customer service and backlog reduction since receiving $80 billion in 2022, but the cuts threaten to reverse these gains.
Republicans, who have long opposed increased IRS funding, argue the cuts prevent overreach, while Democrats contend they undermine efforts to ensure tax compliance and fairness.