U.S. Sens. John Thune (R-SD) and Chuck Grassley (R-IA) plan to introduce legislation that would give Congress a direct say in how $80 billion of new funding for the Internal Revenue Service (IRS) could be spent.
The proposed bill, which they are planning to introduce later this month, would require the IRS to provide Congress with an annual plan for how the agency intends to use the new funding from the Inflation Reduction Act, which would be subject to a new joint resolution of disapproval.
In addition, the proposed bill would require quarterly updates from the IRS and the U.S. Department of the Treasury to enable consistent and transparent evaluation of the plans, provide accountability for any misuse of funds, and guard against violations of taxpayer rights. If reports are not timely or thorough, the agencies would be subject to financial penalties.
“The Democrats’ attempt to supersize the IRS without holding the agency accountable to Congress and American taxpayers is dangerous and irresponsible,” Thune said. “This legislation would provide much-needed oversight of the unprecedented $80 billion in new funding to the agency, more than half of which Democrats have directed toward enforcement-related measures, including audits. If our bill becomes law, the Biden administration’s IRS would have to answer to the American people, not Washington bureaucrats.”
The proposal has the backing of the National Taxpayers Union, Americans for Tax Reform, and Americans for Prosperity.
“Government, especially when it comes to the treatment of taxpayers, needs to [be] accountable and transparent to the American people,” Grassley said. “When Democrats’ partisan spending bill gave the IRS an extra 80 billion dollars, their legislation included no oversight mechanisms whatsoever. Our bill will ensure that the IRS is answerable to the American people in how it uses this money and will force it to forfeit funds every day it’s not in compliance.”