Legislation would let Congress decide how IRS funds are spent

Legislation recently introduced in the U.S. House of Representatives would give Congress authorization to direct how new IRS funding can be spent.

The IRS Funding Accountability Act would require the IRS to provide Congress with an annual plan for how the agency intends to use new IRA funds and require quarterly updates from the IRS and the U.S. Department of the Treasury to enable consistent and transparent evaluation of the plans. Failure to do so would result in financial penalties.

The bill is in response to the Inflation Reduction Act, which will provide the IRS with $80 billion of new funding.

“The $80 billion authorized in the so-called Inflation Reduction Act will unfairly target low-and-middle income Americans,” U.S. Rep. Mike Kelly (R-PA), House Ways & Means’ Select Revenues Subcommittee minority leader, who introduced the bill, said. “The goal of my legislation is to provide much-needed oversight and accountability that the Inflation Reduction Act lacks. This will hold government accountable to the American people and ensure the IRS is properly using taxpayer dollars.”

The legislation has the support of the National Taxpayers Union, Americans for Tax Reform, and Americans For Prosperity.

U.S. Sens. Chuck Grassley (R-IA) and John Thune (R-SD) introduced companion legislation in the U.S. Senate.