IRS, don’t take another budget cut; spend what you can, and quickly Published July 30, 2024

The House Appropriations Committee released a fiscal 2025 spending bill last week that would cut IRS funding by nearly 18% and zero out money for the new Direct File system.

The proposed bill would allocate the agency only $10.11 billion — a $2.2 billion reduction from the current allotment. The majority of these cuts would likely impede future progress in spite of the hard-fought wins the agency has accomplished this year, including long-overdue tech improvements.

Although intended in part to halt the new direct file tool and preclude increased enforcement, this budget reduction isn’t the first of its kind and won’t be the last. Lawmakers have already cut $20 billion in funding from the Inflation Reduction Act, scaling back the budget even further as part of a larger funding deal to keep the government open and operational.