Under a recently announced bipartisan fiscal year 2024 spending proposal, a portion of IRS funding initially provided by the Inflation Reduction Act (IRA) may be rescinded sooner than first announced. The IRA provided the IRS $80 billion in new funding. Subsequent legislation has chipped away at that amount. The Fiscal Responsibility Act cut $1.4 billion. Last spring, a deal was struck to trim another $10 billion in fiscal 2024 and again an additional $10 billion in fiscal 2025. Under the latest agreement, the fiscal 2025 $10 billion would be accelerated, meaning all $20 billion would be clawed back this year. Whether the spending deal will pass Congress remains uncertain. Stay tuned.
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