Family and Small Business Taxpayer Protection Act

This bill would take back unspent money that had been set aside for the IRS and related offices. The funds were originally provided by the 2022 Inflation Reduction Act for things like tax enforcement, running the agency, and exploring a free, direct e-file system. The “unobligated” balances (money not yet committed) would be canceled as of when this becomes law. It also pulls back unspent funds for the Treasury Inspector General for Tax Administration, the Treasury’s Office of Tax Policy, the U.S. Tax Court, and other Treasury offices that oversee and support the IRS.

In everyday terms, this could mean the IRS and related offices have fewer resources for audits, customer service, and work on a free, direct e-file option, since that unspent money would no longer be available.

• Who is affected: IRS, Treasury oversight offices, and the U.S. Tax Court; indirectly, taxpayers who use IRS services.
• What changes: Cancels unspent IRS funds from the Inflation Reduction Act, including money for enforcement, operations, and a free e-file study; also cancels related Treasury and Tax Court funds .
• When: The cancellations apply to unspent balances as of the date this becomes law.