The Internal Revenue Service (IRS) got a six percent boost in funding in the $1.5 trillion omnibus spending deal (H.R. 2471) that Congress passed last week, which equates to the most significant funding increase for the agency since 2001.
IRS funding in the bill is earmarked for taxpayer services, to help tackle this tax-filing season and a pandemic-induced backlog of unprocessed tax returns; enforcement; and modernizing the agency’s antiquated business systems. The funding increase will also help the IRS fill around 10,000 mostly entry-level jobs.
Last month, Senate Finance Committee Chair Ron Wyden (D-OR) said rebuilding the IRS after decades of inadequate funding is a top priority.
“Officials were clear about the challenges facing the IRS, including decades-old technology, and detailed the necessity of Congress providing adequate resources,” Wyden said. “While IRS employees have done outstanding work over the pandemic to process returns, send relief payments, and roll out monthly Child Tax Credit payments, they are severely under-resourced and understaffed.”