IRS Crackdown on Wealthy, Companies at Risk With Funding Limbo

Slashing the IRS’s extra funding would end or slow the agency’s enforcement efforts on wealthy taxpayers and large companies that aren’t paying what they owe to the US, the Treasury Department warned Tuesday.

If it lost $20 billion in modernization funding, the IRS projects it would examine about 8,000 fewer audits on high-income individuals and large companies from fiscal years 2025 through 2029. It also would equate to an eight-fold increase in caller wait times in 2026 and widen the deficit by $140 billion in lost collection revenue over a decade.

A Republican sweep of the Senate, House, ...