A bill to rescind the unobligated balances of amounts appropriated for Internal Revenue Service enhancements and use such funding for an External Revenue Service.
A bill to rescind the unobligated balances of amounts appropriated for Internal Revenue Service enhancements and use such funding for an External Revenue Service.
Plain Language Summary
# Summary of S. 175: Family and Small Business Taxpayer Protection Act **What the Bill Would Do** This bill would cancel (rescind) unused federal funding that was given to the Internal Revenue Service (IRS) under the 2022 Inflation Reduction Act. Specifically, it targets money designated for IRS enforcement activities, customer service improvements, computer system upgrades, and development of a free tax filing system. The bill also rescinds funding for Treasury Department offices that oversee the IRS and related tax agencies. The legislation expresses Congress's intent that these recovered funds should instead be used to establish an "External Revenue Service," though the bill's summary is incomplete regarding the details of this alternative agency. **Who It Affects** This bill primarily affects the IRS and its operations.
Indirectly, it could impact taxpayers by potentially reducing IRS enforcement capacity and customer service capabilities. It could also affect small businesses and families to the extent that IRS services support their tax compliance. **Current Status** S. 175 is currently in committee, meaning it has not yet advanced for a full vote in the Senate. The bill was introduced by Senator Bernie Moreno (R-OH) in the 119th Congress.
CRS Official Summary
Family and Small Business Taxpayer Protection Act This bill rescinds unobligated funds that were provided by the Inflation Reduction Act of 2022 to the Internal Revenue Service (IRS) for enforcement activities related to the determination and collection of taxes, for taxpayer services, for operations support for taxpayer services and enforcement activities, for business system modernization, and for a task force to research options for a free, direct electronic filing (e-filing) tax return system. The bill also rescinds unobligated funds that were provided by the Inflation Reduction Act of 2022 for expenses of theTreasury Inspector General for Tax Administration,Office of Tax Policy,U.S. Tax Court, andoffices within the Department of the Treasury that provide oversight and support for the IRS.Finally, the bill expresses the sense of Congress that the rescinded unobligated funds that were appropriated to the IRS by the Inflation Reduction Act of 2022 should be appropriated for the establishment and administration of an External Revenue Service.
Latest Action
Read twice and referred to the Committee on Finance.