Democrats on the House Appropriations Committee recently released a proposed fiscal year 2023 spending bill that includes $13.6 billion for the IRS—a $1 billion increase from its current level of funding. While the proposed figure comes in below the $14.1 billion requested by President Joe Biden in his proposed budget, the number put forth by the Appropriations Committee would represent a fourth consecutive year of increased resources for the agency, and would come on the heels of the IRS’s largest spending increase in decades (via the fiscal 2022 omnibus spending deal).
Nevertheless, the funding appears to be badly needed at the agency, as the IRS is still plagued with a plethora of issues including mounting paper return backlogs and dwindling staff resources. House Appropriations Committee Chair Rosa DeLauro, D-Conn., stated the IRS funding outlined in the draft bill would help the agency “provide better customer service and crack down on big corporations and the wealthy who are not paying their fair share in taxes.”
Because of the razor-thin margins Democrats hold in both chambers, any final government funding package will be the product of negotiations among lawmakers in both parties and chambers. The current spending bill runs until the end of the government fiscal year, Sept. 30, 2022.
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