U.S. Senators Todd Young (R-Ind.), John Thune (R-S.D.), and Chuck Grassley (R-Iowa), along with a group of colleagues, introduced the IRS Funding Accountability Act yesterday.
Earlier this year, Senate Democrats passed the so-called “Inflation Reduction Act” (IRA), which will infuse the Internal Revenue Service (IRS) with $80 billion of new funding without any oversight measures to prevent waste, protect taxpayer rights, or measure improvements of service. The IRS Funding Accountability Act would give Congress a direct say in how this new funding could be spent, hold the IRS more accountable, and provide greater transparency for the American people. Text of the bill can be found here.
“Hoosier families are struggling with high prices and record-high inflation. Before Washington Democrats spend more taxpayer dollars, we need transparency about where the money is going and how it will be used. Our bill will hold the IRS accountable,” said Senator Young.
The legislation would require the IRS to provide Congress with an annual plan for how the agency intends to use the new IRA funds, which would be subject to a new joint resolution of disapproval. The bill would also require quarterly updates from the IRS and 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. Failure to submit timely and thorough plans or reports would result in financial penalties, including IRA funds being rescinded on a daily basis until the IRS complies with the reporting requirements.
“The Democrats’ attempt to supersize the IRS without holding the agency accountable to Congress and American taxpayers is dangerous and irresponsible,” said Senator Thune. “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.”
“Government, especially when it comes to the treatment of taxpayers, needs to be accountable and transparent to the American people,” said Senator Grassley. “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.”
“Joe Biden promised taxpayers that no one earning less than $400,000 would see a penny more in taxes. Biden lied his way into office,” said Grover Norquist, president of Americans for Tax Reform. “Democrats raised taxes on American families and unleashed 87,000 new IRS agents to shakedown small business owners and ramp up audits on taxpayers. Congressional oversight of Biden’s IRS is essential. This legislation will help rein in Biden’s IRS and address the agency’s broken culture of unaccountability.”
The legislation is also co-sponsored by Senators John Barrasso (R-Wyo.), Mike Braun (R-Ind.), Richard Burr (R-N.C.), Bill Cassidy (R-La.), Mike Crapo (R-Idaho), John Cornyn (R-Texas), Steve Daines (R-Mont.), James Lankford (R-Okla.), Rob Portman (R-Ohio), and Pat Toomey (R-Pa.).
Additional background information on the bill can be found here.
News release provided by Senator Young’s office.