What You Need to Know
- The bill would remove the IRS from the congressional appropriations process.
- Mandatory funding would ensure that IRS budget is steady and predictable, Warren said.
- Budget cuts have hollowed out the agency so it doesn't have the resources to go after wealthy tax cheats, Warren said.
Sen. Elizabeth Warren, D-Mass., introduced legislation Monday to help the Internal Revenue Service go after wealthy tax cheats by permanently removing the agency from the annual appropriations process and setting mandatory funding for the agency at $31.5 billion.
The Restoring the IRS Act of 2021, according to Warren, would “rebuild and strengthen the IRS” with new funding and also allow the agency “to fairly enforce the tax code, modernize its IT systems, and improve taxpayer services.”
Said Warren: “For too long, the wealthiest Americans and big corporations have been able to use lawyers, accountants, and lobbyists to avoid paying their fair share — and budget cuts have hollowed out the IRS so it doesn’t have the resources to go after wealthy tax cheats. The IRS should have more — and more stable — resources to do its job, and my bill would do just that.”
Mandatory funding would ensuring that the IRS budget “is steady, predictable, and sustained,” Warren said.
What Your Peers Are Reading
The actual annual tax gap possibly exceeds $1 trillion per year, IRS Commissioner Charles Rettig told senators in mid-April.