U.S. Treasury officials are urging Congress to release $20 billion in IRS enforcement funds currently frozen due to legislative language. This funding, separate from a previous $20 billion cut last year, is crucial for IRS operations, including audits and hiring. Treasury officials warn that if the funds remain inaccessible, the national deficit could increase by $140 billion, audits of wealthy individuals and large corporations would decline, and the IRS would face a hiring freeze. The funding was originally part of the Inflation Reduction Act but was partially rescinded under a 2023 debt ceiling deal. The situation also comes amid potential policy changes under a new Trump administration and a Republican-led Congress, who have proposed cuts to the IRS budget and its modernization efforts.
https://apnews.com/article/irs-treasury-trump-funding-congress-be9ff95d284e127c7ba1ac44c769eefa