The IRS announced the recovery of $4.7 billion in back taxes and proceeds from various crimes since receiving increased funding through legislation in 2022.
This recovery includes funds from high-income taxpayers with overdue debts, criminal investigations into activities like drug trafficking, terrorist financing, and whistleblower information.
State of play: Amidst the recovery announcement, Republicans plan to rescind the tens of billions of dollars in funding provided to the IRS by Democrats.
- Despite GOP plans to cut funding, IRS leadership aims to justify retaining current funding levels, citing improvements made during their term.
What we’re watching: The future funding of the IRS remains uncertain due to previous rescinding of funds and diversion of resources to nondefense programs.
- U.S. Treasury officials are urging Congress to unlock $20 billion in enforcement money that has been frozen by legislative language.
- Former Missouri congressman Billy Long is expected to be nominated by Trump as the next commissioner of the IRS.
- The current IRS Commissioner, Danny Werfel, is scheduled to end his term in 2027. It is unclear whether he will step down before Trump’s inauguration.
