John,
Last year, Republicans secured a $20 billion cut in IRS funding when they held the world economy hostage by threatening to force the U.S. government into default. Now, with federal funding running out in less than a month, they’re demanding even deeper IRS cuts in exchange for keeping the government’s doors open.
Research shows that for every $1 spent on making sure that wealthy tax cheats pay what they owe, we see, on average, a $22 return.[1] Cuts to IRS funding will result in less revenue to pay for critical services like housing, nutritional assistance, Head Start, healthcare, and more. Or if we don’t cut services, the federal deficit will balloon by at least $114 billion over 10 years.[2]
Republicans know this. But they’re willing to cut services working families need and deserve and/or let the federal deficit balloon―despite their claimed concern about national debt―all in order to protect their wealthy tax-cheat donors.
Sign now to fight back against GOP attempts to further gut the IRS. Tell Congress that investments in the IRS are investments in U.S. taxpayers, our communities, and our future.
The IRS investments we fought for and won are already allowing the IRS to crack down on rampant tax evasion by the wealthy and corporations. The agency has collected $500 million from millionaire tax cheats so far,[3] notified Microsoft that it owes $29 billion in back taxes,[4] and announced the audits of 60 giant corporations that together make more than $500 billion in profits each year.[5]
But the extra funding for the IRS does more than catch tax cheaters. With tax season underway, honest taxpayers will start to notice improved customer service from the IRS because of the investments we’ve made.
The IRS is now able to process tax forms more quickly and has cleared a backlog of more than 23 million individual and business returns.[6] Last year, they also cut the wait time for phone calls to the IRS from 28 minutes down to just 3 minutes, answering 3 million more calls than the year before.[7]
Most exciting, the IRS is rolling out a brand new Direct File pilot program, which will allow millions of taxpayers to file their federal and state tax returns at the same time, using free online software provided by the IRS. If the pilot program is successful in the initial 12 states of the rollout, it will likely be adopted even more broadly in next year’s tax filing season. That means millions of taxpayers will be able to save time and money filing their taxes each year instead of enriching corporations like TurboTax and H&R Block.
Republicans―doing the bidding of TurboTax and H&R Block―want to kill Direct File, forcing taxpayers to keep relying on high-priced tax-filing services.
And if they have their way, Republicans will wipe out all of the advances in service and enforcement the IRS has made with restored funding.
Add your name and tell Congress: No more cuts to the IRS!
Thank you for fighting for a tax system that works for everyday people and where the rich and corporations finally pay what they owe.
David Kass
Executive Director
Americans for Tax Fairness Action Fund
[1] CONSERVATIVE EFFORTS TO PAD WEALTHY TAX CHEATS’ POCKETS
[2] Estimated Budgetary Effects of H.R. 23, the Family and Small Business Taxpayer Protection Act, as Posted on the Website of the Clerk of the House of Representatives on January 9, 2023 as an Item That May Be Considered Pursuant to a Rule
[3] The IRS crackdown on high-end taxpayers is already raking in millions in back taxes — here’s how much
[4] IRS says Microsoft owes an additional $29 billion in back taxes
[5] IRS Investment Update: Business Account Launches, Noncompliant US Subsidiaries Targeted
[6] U.S. IRS clears massive backlog of unprocessed paper tax returns
[7] Modernizing the IRS
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