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

Cross-posted from the Institute on Taxation and Economic Policy

Tax enforcement was supposed to roughly $45.6 billion from the Inflation Reduction Act to help the agency recoup some of the hundreds of billions in revenue lost to wealthy and corporate tax avoidance. This was a smart, fiscally responsible investment which should have had broad appeal to anyone serious about addressing annual deficits. After all, as the Congressional Budget Office routinely finds, this funding pays for itself many times over.

But now an account that had once held close to $46 billion and was intended to help the IRS collect more of what is owed by rich households and profitable corporations through 2031, is down to roughly $300 million (based on expenditures through June 30) and will likely be depleted before the end of the year. How did we get here and what does it mean for the IRS’s future? READ MORE from ITEP.org