Debt-Limit Deal Speeds Up Fight for Additional IRS Funds

A cut to the IRS in the debt-limit deal injects new uncertainty into the agency’s long-term overhaul plans, accelerating a fight over the agency’s future once it exhausts the remaining multiyear funds.

A deal brokered between the White House and House GOP leadership included a roughly 25% reduction to the $80 billion in supplemental funding from last year’s tax-and-climate law. There’s optimism the agency can keep its plan to replace technology and improve enforcement, but some expressed concern that future talks may whittle away more of the shrinking funds.

“A major purpose of the initial $80 billion multiyear investment was ...