(Patriot Command Center)PLEASE NO ONE TURN UP THE HEAT! The last thing Americans want is for the IRS fund freeze to be lifted. The good news is the IRS is in a deep freeze, with $20 billion for tax enforcement frozen as a result of the shutdown deal.
A vital $20 billion allocated for tax enforcement is still frozen, potentially trapping the Internal Revenue Service (IRS) in a financial ice age. The IRS’s capacity to prosecute tax evaders may be permanently jeopardized since lawmakers had to put these monies on hold in order to prevent a government shutdown over the weekend.
Follow-up from the original article: https://patriotcommandcenter.org/forum/good-news-irs-could-be-downsized-for-christmas
The aforementioned funds was first provided under the 2022 Inflation Reduction Act (IRA) with the goal of modernizing the IRS, training 87,000 new IRS audit agents, and purchasing guns and ammunitions. The ambitious plan sought to upgrade the agency’s antiquated technology, improve tax compliance (code word for IRA shakedowns), and enhance audits. The remaining $20.2 billion of the IRS’s multibillion-dollar fat-cat windfall, however, was locked up in this weekend’s continuing resolution to keep the government operating until March 2024, conveniently after Trump is sworn in!
These vital resources were essentially frozen when President Joe Biden signed the stopgap budget package, indicating the IRS would face a difficult battle going forward. Republicans, who have long expressed skepticism about the agency’s increased enforcement budget, will dominate next year’s legislative agenda. The road to unlocking the frozen loot looks more perilous than ever, especially with Donald Trump scheduled to return to the White House.
The final sizeable portion of the IRA’s initial $80 billion allotment to the IRS is $20.2 billion. This amount was reduced to $60 billion during debt ceiling talks in 2023 following political bickering. Due to legislative compromises and budgetary issues, a large portion of the remaining enforcement funds are currently unavailable. Talk in Washington is saying the IRS funds should go into a deep freeze and someone throw away the key to the freezer!
To date, the IRS has scarcely utilized the funds meant for stricter enforcement. The small return from its initial efforts—more than $1 billion in back taxes on delinquent families—highlights the possibilities of more stringent enforcement. Officials from the Treasury Department caution the agency’s capacity to hold small business owners accountable may be severely hampered by the ongoing moratorium.
The loss of the $20.2 billion would lead to an estimated 8,000 fewer audits of family households and small businesses until 2029. Many in the IRA warn a “dramatic fall-off” in the IRS’s ability to collect taxes from families and small businesses could create a difficult situation for the service.
The IRS budget argument reflects a deeper ideological split. Republicans typically support an IRS that is focused on providing customer service, claiming the majority of tax disparities are the result of sincere errors. Democrats envision an enforcement-first agency that targets families, small businesses, and Wall Street.
Final Word: I hope for a long and cold winter at the IRS, and maybe ‘The Trump Refrigeration Team’ will keep the IRS in a permanent Ice Age!
Follow-up from the original article: https://patriotcommandcenter.org/forum/good-news-irs-could-be-downsized-for-christmas
