IRS Cuts Could Cruise on Autopilot; New Bill Aims to Restore Funding to Help Taxpayers and Fight Tax Cheats

Cross-posted from the Institute on Taxation and Economic Policy

This fall, Congress could allow billions of dollars in IRS funding to disappear on autopilot. If your reaction to reading that, gentle Reader, is to glance up at the date of this article to double-check that you’re not accidentally reading an old piece, you’re not. Yes, that did, indeed, already happen. And, yes, it could happen again—and for the exact same reason. By agreeing to IRS rescissions in the fiscal year 2026 appropriations package enacted earlier this year, congressional Democrats have set up FY27 as a repeat of the showdown they lost in FY25. We may not know the outcome until well after the election, but there are reasons to be both optimistic and worried about how Congress will proceed.

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IRS Enforcement Boost Was Supposed to Last 10 Years. Congress Killed It in Under Three.