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The Internal Revenue Service is back with its hand out, pleading for over $100 billion in new funding from Congress. This comes despite the agency receiving a massive $60 billion cash infusion just last year from the Inflation Reduction Act.You’d think that mountain of money would be enough to get the IRS’s house in order for years to come. But according to IRS Commissioner Danny Werfel, the agency is already running on fumes and will “likely use up” all that 2022 funding before it expires in 2031.
Throwing Good Money After Bad
Instead of providing a detailed accounting for where that $60 billion windfall went, Werfel is demanding another $104 billion from taxpayers to keep the lights on through 2034. His rationale? If Congress doesn’t pony up, the IRS will have to lay off customer service staff, leaving “the vast majority of taxpayers unable to reach an IRS representative for assistance.”This reeks of political blackmail. Werfel is betting that voters will blame their representatives when they get stuck on hold with the IRS, rather than questioning why the agency so quickly burned through tens of billions in extra funding.
Unfulfilled Promises, Unmet Goals
The 2022 Inflation Reduction Act money was supposed to fund an agency overhaul, including hiring 20,000 new employees by the end of 2024 and another 10,000 next year. But the IRS has already fallen well short of that first-year hiring goal, especially when it comes to new auditors.Taxpayer service hasn’t improved either. By December 2023, the backlog of unprocessed returns had barely budged compared to the prior year.Then there’s the IRS’s new $114 million Direct File system for filing taxes directly with the government, which was launched this year for just 140,000 users despite years of planning. It’s a colossal waste aimed at undercutting private tax preparation services.
Time for an Audit, Not More Funding
Commissioner Werfel’s testimony made it crystal clear: The IRS has mismanaged its massive Inflation Reduction Act funding with little to show for it so far. Instead of throwing another $104 billion at this money pit, Congress should demand a full audit to account for where that original $60 billion went.The IRS has proved it can’t be trusted with blank checks from taxpayers. It’s time for accountability, not another nine-figure bailout for an agency that seems to struggle with even basic competence and fiscal responsibility.
