IRS Modernization Funding Clawed Back as Shutdown Ends: BGOV Tax

IRS Modernization Funds Shrink Further

The pot of funding for IRS modernization keeps getting smaller.

Tuesday’s House-passed legislation ends a short lapse in annual government funding for agencies, including the IRS and Treasury Department. But it contains less annual funding for the IRS and another clawback to billions of the agency’s dwindling pile of modernization cash.

The measure rescinds $11.7 billion more of what began as about $80 billion of mandatory spending in Democrats’ 2022 tax-and-climate law. Congress has so far rescinded a total of nearly $42 billion, largely from enforcement funding, and the agency has already spent $15.9 billion ...