No Further Funding Cuts For IRS In FY24

Other than a planned repurposing of Inflation Reduction Act supplemental funding, the Internal Revenue Service saw no other cuts as the President signed off on the resolution to keep the federal government funded through the remainder of fiscal year 2024.

According to a deal struck between Congressional Republicans and the White House in 2023 as part of the agreement to raise the debt ceiling, the Congress was to rescind more than $21 billion of the agency’s more than $80 billion in supplemental funding earmarked for improved enforcement, operations and upgrades to the information technology infrastructure. More than $1 billion was repurposed when the debt ceiling was raised, with the remaining $20 billion to be spread evenly across the FY 2024 and FY 2025 budgets for the agency.

However, the entire $20 billion was rescinded in the FY 2024 funding bill that was signed into law on March 23, 2024, preventing a government shutdown. The rest of the IRS budget remains flat for the remainder of 2024.

President Biden is looking to reverse that $20 billion rescission of supplemental funding in his FY 2025 budget proposal, which also asks for no increases to the IRS’s regular budget.

By Gregory Twachtman, Washington News Editor