John,

When President Biden signed the Inflation Reduction Act into law in 2022, it included an historic $80 billion investment in the IRS. This investment allowed the IRS to launch a pilot program of the first-ever, free, online tax filing system known as Direct File, which saved 140,000 taxpayers in 12 states $5.6 million in the first year.¹

The investment is also projected to result in $200 billion in additional tax revenue over 10 years from increased tax enforcement on wealthy and corporate tax cheats.² Cracking down on wealthy tax cheats is an important part of reducing inequality and working to close the racial wealth divide.

Unfortunately, instead of embracing these historic investments, which are allowing the IRS to better serve everyday taxpayers while cracking down on tax evaders, the House Appropriations Committee is preparing to vote tomorrow on a proposal that would ban the IRS from implementing Direct File nationwide, and would cut $2 billion from IRS tax enforcement.

This is part of the larger right-wing effort to cut $75 billion in critical funding from nutrition, housing, education, and much more―even as these cuts harm everyday people.

Take action today by writing to your senators and representative. Demand Congress reject cuts to the IRS that are nothing more than a handout to wealthy and corporate tax cheats.

Thank you for fighting back against draconian cuts that harm vulnerable communities and pad the pockets of the rich and powerful.

Meredith Dodson
Senior Director of Public Policy, CHN Action

¹ IRS makes Direct File a permanent option to file federal tax returns; expanded access for more taxpayers planned for the 2025 filing season
² The Effects of Increased Funding for the IRS

-- DEBORAH'S EMAIL --

John,

Included in House Republicans’ proposed $75 billion in cuts to human needs programs for 2025 is a $2 billion cut to IRS tax enforcement. And, when the House Appropriations Committee votes on IRS funding this Thursday, they’ll also vote to try and block the IRS from expanding its new, free online tax filing system, which saved 140,000 taxpayers in 12 states $5.6 million in this year’s pilot program.¹

As the Washington Post points out:²

“Republicans are trying to make it easier for corporations and the wealthy to shirk their tax obligations, while making it harder for honest, working-class taxpayers to file their returns for free.”

While Republicans claim that cuts to the IRS are intended to save taxpayers money, the numbers simply don’t add up. When congressional Democrats passed the Inflation Reduction Act in 2022, it was estimated that the historic $80 billion investment in the IRS would result in $200 billion in additional tax revenue over 10 years.³

In fact, shortly after hiring new tax enforcement staff, the IRS collected $500 million from millionaire tax cheats,⁴ notified Microsoft that it owes $29 billion in back taxes,⁵ and announced the audits of 60 giant corporations that together make more than $500 billion in profits each year.⁶ The Treasury Department told reporter Joseph Zeballos-Roig of Semafor that in FY 2023, the IRS collected $86 billion through tougher enforcement, amounting to a return on investment of about $7 to $1.⁷

Once collected, these are resources that can go toward critical human needs programs from SNAP nutrition benefits to housing for vulnerable communities to fully funding public education.

So: these cuts hit low-income taxpayers twice over. By preventing the IRS from capturing tax dollars owed by wealthy tax cheats, there won’t be enough funding to cover the services people need. And by stopping the IRS from offering a free tax-filing service, taxpayers with modest means will have to pay hundreds of dollars to dutifully file their tax forms.

Send a message to your senators and representative now urging Congress to reject IRS funding cuts, which undermine tax enforcement of the rich and corporations, and limit the resources available to invest in critical human needs.

As the House takes up their IRS funding bill this week, it is yet another example of right-wing members of Congress seeking funding cuts based on ideological grounds. Their proposed cuts will do nothing but harm vulnerable people while rewarding wealthy and corporate campaign contributors.

Help us fight back against attacks on the IRS that are nothing more than a handout to wealthy and corporate tax cheats and to corporate tax preparers like TurboTax and H&R Block.

Thank you for taking action today,

Deborah Weinstein
Executive Director, CHN Action

¹ IRS makes Direct File a permanent option to file federal tax returns; expanded access for more taxpayers planned for the 2025 filing season
² The law-and-order party defunds the IRS. Again.
³ The Effects of Increased Funding for the IRS
⁴ The IRS crackdown on high-end taxpayers is already raking in millions in back taxes — here’s how much
⁵ IRS says Microsoft owes an additional $29 billion in back taxes
⁶ IRS Investment Update: Business Account Launches, Noncompliant US Subsidiaries Targeted
⁷ https://x.com/josephzeballos/status/1798179524267360623