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US Tax Reform

Senate Committee Approves Budget Increase for IRS

Thomson Reuters Tax & Accounting  

· 1 minute read

Thomson Reuters Tax & Accounting  

· 1 minute read

The Senate Appropriations Committee on Sept. 19 voted to advance the FY2020 Financial Services and General Government Appropriations Act, which funds the U.S. Treasury Department and the IRS. The measure provides $11.414 billion for the IRS, including $200 million more than the FY2019 enacted level for enforcement activities to address the tax gap.

The Senate funding for the IRS, however, falls short of the House-passed Financial Services and General Government Appropriations Act, 2020 (H.R. 3351) which would provide $12 billion for the IRS—nearly a $700 million increase from the FY2019 enacted level.

In addition, the Senate bill includes:

  • A prohibition on IRS funds for bonuses or to rehire former employees unless employee conduct and tax compliance is given consideration;
  • A prohibition on funds for the IRS to target groups for regulatory scrutiny “based on their ideological beliefs;”
  • A prohibition on funds for the IRS to target individuals for “exercising their First Amendment rights.”

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