IRS Enforcement Budget Slashed

House Republicans proposed to reduce the IRS’ enforcement budget for fiscal year 2027 to $3.6 billion from nearly $5 billion in the prior year. The Trump administration also proposed a cut, but not as steep — it called for $4.1 billion for enforcement.

The GOP bill’s sharp reduction in enforcement funding was a major point of contention during the committee markup. FSGG Appropriations Subcommittee Ranking Member Steny Hoyer (D-MD) offered an amendment — that ultimately failed — but would have increased the enforcement budget by $1.8 billion. Hoyer argued that starving the agency of enforcement funding is fiscally irresponsible, comparing it to a business that does not collect its accounts receivable. Cutting IRS funding “has a very real fiscal cost,” he said.

To dig deeper, visit the original article on the Thomson Reuters blog.