A proposal to appropriate $80 billion over 10 years to the IRS is back on the table as part of the Inflation Reduction Act. (It was originally included in the Build Back Better bill.) The funds would be available to the IRS through Sept. 30, 2031, across four areas of the agency. First, nearly $3.2 billion would help improve taxpayer services. Second, $45.6 billion would go toward reducing the “tax gap.” These funds also would cover litigation and criminal investigation expenses. Third, $25.3 billion would bolster internal IRS operations. Fourth, $4.75 billion would help modernize IRS computer systems. Extending the IRS’s tax enforcement capabilities could raise an estimated $124 billion.
