The House Appropriations Subcommittee that oversees the annual IRS Budget advanced legislation to cut spending at the agency by another $2.8B. The vote was passed 9-6, primarily by a GOP led majority.
That would translate into a 23% spending cut for fiscal 2026 that begins on October 1st. This is even higher than what the New Administration had proposed which was only a 20% reduction.
Highlights of the bill call for the following…
1 – A reduction on tax enforcement spending to $3B, which is $600M less than was proposed by the administration.
2 – A $2.8B spend on taxpayer services which is roughly consistent with current levels, but $800M less than the administration’s proposal.
3 – $3.75B for operations support which is higher than the administration’s proposal at $2.6B.
I’m telling you now that this is going to turn into an old-fashioned donnybrook.
The administration’s proposed IRS reduction is in line with it’s broader plan to cut $163B or 20% from domestic spending programs. It also adds money to items like defense.
Democrats have universally opposed the budget proposal. The next few months should be interesting as this is fought out on the floors of the House and Senate.
Let me leave you with this…
Further reductions to IRS Staffing should be of concern to anyone having business before the Service. Trying to get anything done at the agency has become almost impossible.
I have the super-secret telephone numbers into individual IRS Sections where I could get things done quietly behind the scenes. After the most recent budget cuts, half of the time when I call, the number isn’t answered.
I wonder what will happen if these new cuts are put into place? When the only thing you can do is write a letter and wait 3 – 6 months for a response, it just makes everyone’s life that much more difficult.
We’ll see if this is put into place. I’ll keep you posted.
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.
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