Taxpayer Advocate Calls on Congress to Maintain IRS Funding for Services

Erin Collins, the National Taxpayer Advocate, emphasized the critical need for funding taxpayer services and technology modernization amid scrutiny of the IRS by a Republican-controlled Congress. In her recent annual report, Collins highlighted the concerning disparity in funding priorities established by the Inflation Reduction Act, which allocated 58% of its $78.9 billion for enforcement, while only designating 4% for taxpayer services and 6% for technology improvements. She noted the bipartisan support for enhancing taxpayer services, contrasting the controversial enforcement funding. Collins argued that adequate investment in taxpayer services would lead to fairer experiences, improved compliance, and reduced reliance on costly enforcement measures. In FY 2024, the IRS collected $98.7 billion through enforcement, a mere 2% of overall revenue, with the majority of taxes being self-assessed. She cautioned Congress against making cuts to essential taxpayer services in efforts to reduce enforcement funding, as this could negatively impact taxpayer experience. Furthermore, Collins pointed out the IRS's struggles to maintain operations amidst rising costs and previous funding cuts, including a $20 billion rescission as part of the 2023 budget deal. With political dynamics in flux, further funding cuts could be on the horizon for 2025.




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