Congress is giving the IRS new priorities to staff up and deal with a pandemic-era backlog of tax returns — but a slightly smaller annual budget to meet those goals.
The fiscal 2023 omnibus spending bill lawmakers unveiled this week cuts $275 million from the IRS budget, for a total budget of $12.3 billion for the rest of the fiscal year.
The IRS, however, still keeps $80 billion in multi-year spending as part the Inflation Reduction Act. Those funds will allow the agency to rebuild its workforce and modernize its legacy IT after more than a decade of budget cuts.
