Republicans Look To Rescind Another $14.3 Billion In Inflation Reduction Act Funding For The IRS

According to Law360, House Republican legislation that would rescind $14.3 billion in Inflation Reduction Act funding for the Internal Revenue Service to offset an aid package for Israel.

This Would Decrease Federal Revenue By $26.8 Billion Over The Next Decade, The Congressional Budget Office Said Wednesday, November 1, 2023.

The Israel Security Supplemental Appropriations Act, which would pay for aid to Israel by rescinding $14.3 billion in unobligated funding that the Inflation Reduction Act provided to the IRS, would impede the agency's ability to undertake enforcement actions, the CBO said in a report. 

The House of Representatives is expected to vote this week on the proposal. Senate Democrats have already said the legislation would be a nonstarter in that chamber.

"Republicans Never Miss A Chance To Protect 
Their Billionaire Donors," Whitehouse Said.

"As if conditioning aid to Israel on this gift to wealthy tax cheats wasn't bad enough, what they claim will 'pay for' the aid will actually add $12.5 billion to the deficit, nearly doubling the bill's total cost."

The House is also planning to vote on an IRS appropriations bill that aims to cut the agency's annual funding.

The IRS funding bill passed by the Republican-led House Appropriations Committee in July would give the agency $11.2 billion for fiscal 2024, a $1.1 billion drop compared with the agency's fiscal 2023 budget. 

It would also provide 

• $4.2 billion in enforcement funding — a $1.2 billion cut compared with the current fiscal year funding and 
• proposes clawing back $6.1 billion in unobligated funds for enforcement and $4.1 billion for operations support that the IRS received under the Inflation Reduction Act. 
• The 2022 law originally provided the IRS with $25.3 billion for operations support.

Lawmakers have submitted several amendments to the bill ahead of a House Rules Committee vote that could bring the proposal to the House floor next week.

Proposed Republican amendments would block funding for implementation of the Organization for Economic Cooperation and Development's global tax deal and funding for the IRS to enforce the American Rescue Plan Act's provision that requires peer-to-peer payment platforms such as Venmo and PayPal to report aggregate payments of $600 or more. The threshold was $20,000 under previous law.

Republicans also submitted amendments that would prohibit the IRS from hiring new agents and prevent the agency from purchasing and storing firearms and ammunition.

Democrats have introduced amendments to block the IRS from using funds to issue regulatory guidance or rulings that restrict state and local tax deduction workarounds and increase funding for the Taxpayer Advocate Service by $10 million.

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Read more at: Tax Times blog