House lawmakers this week are voting to approve a smaller budget for the IRS as Congress races to avoid another government shutdown at the end of this month. The legislation would provide $11.2 billion to the IRS for the 2026 fiscal year.
That’s about 9% lower than the agency’s 2025 budget of $12.3 billion. The House could vote on the bill Wednesday.
If approved, the measure would provide…
1 – $3 billion for taxpayer service, an increase of about $256 million from fiscal year 2025,.
2 – $5 billion for enforcement, a reduction of $439 million from the prior year.
The bill represents the fourth consecutive year of flat or reduced funding for the IRS, but is significantly less than prior proposals..
The new administration’s 2026 budget proposal from May included a 20% agency funding cut. And the House Appropriations Committee bill approved last September would have cut the agency’s current spending by 23%.
Let me leave you with this…
This comes as the IRS prepares to open tax filing season on January 26th. The agency expects about 164 million individual returns this year, with most of those being impacted by tax changes from OBBBA.
A group of senators led by Elizabeth Warren, (D. MA), and Angus King, (I, ME), in December expressed concerns about the agency’s readiness for the upcoming filing season after personnel cuts by the Department of Government Efficiency, or DOGE, and other reductions in 2025.
The workforce cuts, which included 17% to 19% of key IRS Functions for the current filing season, will obviously impact processing and customer service in 2026, according to a September report from the Treasury Inspector General for Tax Administration, an independent federal agency. The only thing I know is that I still can’t get anyone at the Service on the phone to handle even the simplest of problems.
And I have all the super, secret telephone numbers that aren’t listed anywhere. We’ll see how this season goes.
But two things are certain.
First, if you have an issue, write a letter. There’s no reason to call. And Second, don’t expect your refunds to be processed timely.
If you haven’t sent in the rest of your work from 2025, please get it in today. And if we have processed your December, please get us the answers to your year end questions ASAP.
We will do everything we can to file your returns timely, but this is a very busy year.
As always, if you’re having difficulties with your accounting and tax work, we’d love to talk
to you.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
www.AccountingSolutionsLtd.com
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