House committee proposes $1 billion funding boost for IRS

A congressional appropriations committee wants to give the Internal Revenue Service an additional $1 billion in funding to improve taxpayer service and technology and make the overall tax system fairer.

The House Appropriations Committee released its fiscal year 2023 Financial Services and General Administration Funding Bill on Tuesday, which is being considered by a subcommittee on Wednesday. The legislation provides annual funding for the Treasury Department, the judiciary, the executive office of the president, and other agencies, including the Small Business Administration.

For fiscal year 2023, the bill provides a total of $15.6 billion in discretionary appropriations for the Treasury Department, an increase of $1.3 billion from the level enacted in the fiscal year. 2022. Of the planned total for the Treasury Department, the bill includes $13.6 billion for the IRS, an increase of $1.0 billion from the level enacted for fiscal year 2022. included increases to improve customer service, enforce fairness in the tax system and modernize IRS systems.

Of the total amount, the bill includes $3.4 billion, an increase of $630 million from the level enacted for fiscal year 2022, for taxpayer services. This includes support for the Volunteer Income Tax Assistance Matching Grant Program, the Low-Income Taxpayer Clinic, the Taxpayer Advocate, Tax Advice for Seniors and more services. employees to improve IRS customer service.

There’s also $6.1 billion, an increase of $682 million, above the level enacted for fiscal year 2022, for the app. The funds will support increased law enforcement efforts and more essential personnel.

The package also includes $3.8 billion for general IRS functions to support operations.

To improve the IRS’ outdated technology systems, the package includes $310 million, an increase of $35 million from 2022 levels, for modernizing enterprise systems to update legacy systems of the IRS, some of which date back to the 1960s, and to improve IRS web applications and taxation. case processing.

The IRS headquarters in Washington.

Andrew Harrer/Bloomberg

“By increasing resources for [the] Internal Revenue Service, we’re helping the agency provide better customer service and cracking down on big business and the wealthy who don’t pay their fair share of taxes,” said House Appropriations Committee Chair Rosa DeLauro, D. -Connecticut, in a statement. “I am also particularly proud of the large funding increases to help underserved entrepreneurs and small businesses access capital and contracting opportunities. With these resources and funding to protect the integrity of our elections, we are protecting our democracy, growing our economy and investing in the programs that matter most to working families.

To ensure the money is spent prudently, there is also funding for Treasury Department Inspectors General, including the Treasury Inspector General for Tax Administration. The package includes $253 million for Treasury Inspectors General offices in fiscal year 2023, an increase of $13 million from the level adopted for fiscal year 2022, to ensure robust oversight of departmental policies and practices.