The Inflation Reduction Act recently signed into law by President Biden provides for $80 billion in increased IRS funding over ten years. This increased budget will provide for the hiring of tens of thousands of additional and replacement IRS employees.

Despite the claim that new enforcement is to focus on higher income taxpayers, Republicans in Congress are, in general, less than happy about the significant new dollars for the IRS fearing that it will lead to an IRS agent-in-every-pot and unnecessary grind on taxpayers and business owners (the CBO has estimated the new funding will increase revenues by $180 billion –so a net of $100 billion in additional revenue). However, Republicans face a significant challenge to unwind these new dollars in the immediate future – even with a good election night – given they would face objections (i.e., possible veto) from the Biden administration as well as potentially having to overcome Senate Democrat objections (60 vote barrier).

A different approach (which could become law) to address (if even partially) the concerns of a larger IRS would be for Congress to pass legislation that would strengthen the rights of taxpayers (as well as strengthening the IRS whistleblower program which helps focus on the IRS on the worst actors). Taxpayer rights has been a bipartisan issue for Congress for years – starting with my old boss, Senator Grassley (R-IA) and his colleague Senator Pryor (D-AR) – and most recently with the Putting Taxpayer First...

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