Bloomberg Tax
March 2, 2021, 9:46 AM

Depleted IRS Gains Momentum on Capitol Hill for Funding Boost

Allyson Versprille
Allyson Versprille
Reporter
Kaustuv Basu
Kaustuv Basu
Reporter
Colin Wilhelm
Colin Wilhelm
Reporter

The IRS is experiencing a unique moment where Democrats and Republicans are open to funding increases for the agency—but the question remains how much and for how long.

Years of budget cuts—driven by Republicans over the agency’s extra scrutiny of conservative groups applying for tax-exempt status—have forced the IRS to scale back its workforce by tens of thousands of employees. At the same time, the IRS’s responsibilities have increased.

But there has been a shift recently, with both Democrat and Republican lawmakers signaling they will consider more money for the IRS in the next funding cycle.

The government funding ...

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