The House and Senate passed competing bills on IRS funding as lawmakers race to finish the appropriations process before a potential government shutdown on Oct. 1.
The Senate Appropriations Committee unanimously approved a bipartisan IRS funding bill would keep the IRS budget flat at 12.3 billion for fiscal 2024. The bill from the House Appropriations Committee would cut funding by $1.1 billion and was passed on a 34- 26 party-line vote. Neither bill would address the special IRS funding from the Inflation Reduction Act, though lawmakers recently agreed to reallocate $20 billion of that $80 billion to other priorities. The funding bills are part of a broader appropriations process that would fund the government after the current fiscal year expires on Sept. 30.
The process has proven contentious despite the recent agreement on the debt limit, which was meant to set spending levels for the next two years. Appropriators have been publicly optimistic about getting a deal before the Oct. 1 deadline, but progress has been slow, and a shutdown remains possible. Lawmakers will have just 18 days to finish work after returning from August recess.
Tax priorities, such as extending bonus depreciation and restoring research expensing under Section 174, appear unlikely to be attached to any spending deal in September or October. Lawmakers are increasingly discussing their prospects as being tied to a late year-end deal. The prospects for action before the September and October filing deadlines seem to be diminishing. The spending showdown could also be punted to later in the year by a continuing resolution.
Contact:
Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.
More tax hot topics
No Results Found. Please search again using different keywords and/or filters.