Sponsors (37)
The bill trades modest near-term federal spending reduction and reduced perceived enforcement pressure for weaker IRS operational capacity and modernization, risking slower taxpayer services and lower long-term tax compliance and revenue.
Taxpayers: the rescission reduces funds that could have expanded IRS enforcement or audit activities, lowering the chance of increased perceived audit/collection pressure.
Taxpayers: rescinding previously appropriated IRS balances reduces near-term federal spending relative to the original plan, modestly easing short-term deficit pressures.
Taxpayers and federal employees: the IRS will have fewer operational funds, which could slow processing of returns and refunds and reduce taxpayer assistance, producing service delays.
Taxpayers and financial institutions: cuts could impede IRS modernization and enforcement programs, reducing long-term compliance revenue and potentially shifting tax administration costs onto taxpayers or private entities.
Federal employees: the rescission may force hiring freezes, reduced training, or other workforce impacts at the IRS, harming staff capacity and morale.
Based on analysis of 2 sections of legislative text.
Rescinds unobligated balances previously made available for IRS activities under specified paragraphs of the Inflation Reduction Act of 2022.
Official title: To rescind certain balances made available to the Internal Revenue Service.
Introduced January 3, 2025 by Adrian Smith · Last progress January 3, 2025
Rescinds previously appropriated but unspent Inflation Reduction Act funds that had been made available for Internal Revenue Service activities, effective on the date this Act becomes law. The law simply cancels unobligated balances that were provided to the IRS under specified paragraphs of that earlier statute.