House Republicans are seeking to make good on their campaign promise to rein in the IRS with cutbacks built into the debt ceiling and budget cuts package moving through Congress.
The agency is on course to still get nearly three-quarters of the $80 billion boost that Congress approved for it last year. And the agency has the flexibility to spend some of that money sooner than planned, officials stressed. As for the debt deal, “what this does is put the IRS at the forefront,” said Rep. Patrick McHenry, R-N.C., one of the lead GOP negotiators.
Now, with some of that money clawed back, there is a question about what programs may take a back seat. Treasury officials say their plan to develop an online free file tax return system, which is in its pilot development stage, for instance, will not be impacted by the cuts. Rep. Richard Neal of Massachusetts, the top Democrat on the House Ways and Means Committee, said he spoke with the Treasury about the impact of the debt limit bill’s IRS funding cuts: “I came away, if not happy, at least satisfied.”
Neal said he believes the IRS won’t be greatly harmed as a result of the cuts, adding, “That’s what I’ve been assured.”