The fiscal year 2024 federal budget deal signed into law on March 23, 2024, contained some bad news for the IRS. The agency is losing $20 billion of the more than $80 billion originally allocated to it by the Inflation Reduction Act. The $20 billion cut was stipulated by Congressional Republicans, who refused to pass the budget and avoid a government shutdown unless it was made. President Biden would like to reverse the funding recission by adding it back into his fiscal year 2025 budget proposal. The IRS has earmarked the remaining funds to increase enforcement on delinquent taxpayers, improve operations and upgrade IT infrastructure.
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