The House of Representatives on July 20 approved a fiscal year 2023 budget for the IRS and the Treasury Department that includes $13.6 billion for the revenue agency, an increase of $1 billion from the year’s enacted level.
The legislation was approved as part of the Financial Services Appropriations bill and was one of six spending measures passed by the House. The Senate has yet to complete any of its 12 appropriations bills. Current funding levels for the federal government expire with the end of fiscal year 2022 on September 30.
The largest increase in the IRS budget will go for taxpayer services: $3.4 billion, up $630 million from this year. This includes support for the Volunteer Income Tax Assistance and Matching Grants programs, Low Income Taxpayer Clinics, the National Taxpayer Advocate, Tax Counseling for the Elderly, and hiring of additional personnel to improve IRS customer service.
The IRS’ tax enforcement function received an appropriation of $6.1 billion, up $682 million from the level enacted this year. The funds support stepped-up enforcement and hiring of personnel. The agency’s business systems modernization program, which aims to update technology and improve online applications and tax filing processing, received $310 million, an increase of $35 million above the current enacted amount. Another $3.8 billion went for overhead in the IRS’ operations support area.
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