IRS Funding Cuts: A Looming Crisis for Federal Revenue and Services

Proposed cuts to IRS funding by Republicans could increase the U.S. federal deficit by $140 billion over a decade. This would lead to slower service and reduced audits on large corporations. Deputy Treasury Secretary Wally Adeyemo warns that this could undermine modernization and enforcement efforts.

Proposed cuts to the Internal Revenue Service's funding, long considered by Republicans in Congress, could bolster the federal deficit by an additional $140 billion within the next decade, Deputy Treasury Secretary Wally Adeyemo announced this Tuesday. He highlighted that the IRS's capacity for detailed audits of large businesses would diminish.

Addressing reporters, Adeyemo explained that the IRS faces a potential $20 billion funding shortfall over ten years unless Congress intervenes to address the budget anomaly outlined in the September continuing resolution. The cuts would hinder the IRS's modernization and increase call wait times, he warned.

Adeyemo also noted that without necessary funds, IRS enforcement measures targeting affluent individuals and major corporations could decelerate, potentially affecting initiatives that have already recuperated $1.3 billion. Furthermore, less funding for technological advancements would complicate intensive enforcement tasks.

(With inputs from agencies.)