IRS funding cut eyed by House GOP

House Republicans are moving to cut the Internal Revenue Service by about $1 billion in fiscal 2027, with the deepest hit aimed at enforcement. (federalnewsnetwork.com) The House Appropriations Committee’s Financial Services and General Government bill would fund the IRS at $10.2 billion, down from the $11.2 billion enacted for fiscal 2026. The committee approved the measure on April 22 by a 34-28 vote. (appropriations.house.gov) Republican appropriators said taxpayer services would stay level while enforcement would take the largest reduction. Tax Policy Center reported enforcement would fall by more than $1 billion to $3.6 billion, while taxpayer services would remain at $3 billion. (taxpolicycenter.org) The proposal lands after two straight years of lower annual IRS appropriations. Congress provided the agency $12.3 billion in fiscal 2025, then $11.2 billion in fiscal 2026, before this new House plan cut it again to $10.2 billion. (news.bloombergtax.com) The White House’s own fiscal 2027 budget also asked for less money for the agency, though the House bill would give the IRS slightly more than the administration requested. The IRS budget document says the administration sought $9.8 billion from Congress for fiscal 2027. (irs.gov) The fight is not just about call centers and tax forms. Enforcement pays for audits, collections and criminal investigations, the parts of the agency that pursue unpaid taxes and complex returns. (irs.gov) Supporters of the cut say the bill protects public-facing service while trimming a part of the agency Republicans have long criticized. The House Appropriations Committee’s summary said the package saves about $1 billion overall from the prior year. (appropriations.house.gov) Democrats argued the bill would weaken tax administration as the IRS is already dealing with staff losses and management turnover. In opening remarks at the markup, Rep. Rosa DeLauro said the measure would “gut” tax enforcement and make the tax system less fair. (itep.org) For taxpayers and closely held businesses, the immediate change is in the backdrop, not the filing deadline. A smaller enforcement budget can mean fewer audits and slower follow-up, but it also raises the value of clean records, documented positions and tax planning done before a notice arrives. (federalnewsnetwork.com) The bill still has to clear the full House, the Senate and final negotiations before any cut becomes law. For now, the clearest signal from Republicans is that they want the IRS to keep answering phones while doing less enforcement. (appropriations.house.gov)