IRS funding cut won’t hurt near-term tax collection, officials say
8:22 pm Sunday, May 28th, 2023
WASHINGTON (Reuters) – The budget deal struck by President Joe Biden and House Speaker Kevin McCarthy to end a debt-limit crisis should not change the short-term abilities of tax collectors, according to White House officials.
The deal would shift $10 billion each in fiscal years 2024 and 2025 in funding away the Internal Revenue Service, but officials believe the IRS can make due in the near term since they were funded over a 10-year period. They may need to seek more funding from Congress for future years, one of the officials said.
The text of the House of Representatives legislation released on Sunday showed the deal would take back just $1 billion from the IRS, but the White House agreed to the additional cuts as part of the appropriations process that will take place over the next two years.
(Reporting by Trevor Hunnicutt; Editing by Muralikumar Anantharaman)
