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John,
The battle over IRS funding has reached a critical point with House Republicans introducing two dangerous bills that threaten to undermine tax enforcement and eliminate a successful free online tax filing program.
The first bill, expected for a vote in September, would slash more than $2 billion from the IRS budget, severely hampering the agency's ability to enforce tax laws against wealthy tax evaders.[1] This proposed cut comes at a time when enhanced IRS enforcement efforts have yielded significant results: in less than a year, the IRS collected over $1 billion in back taxes from millionaires.[2]
The second bill, introduced in the House Ways and Means Committee, aims to block the IRS from fully implementing Direct File, a groundbreaking program that has already demonstrated its value to American taxpayers.[3]
With the Senate preparing to vote on its own IRS funding bill in committee tomorrow, which does NOT include these harmful cuts, we must ensure it stays that way while also pushing back against House Republicans' proposals.
Click here to send a message to Congress urging the House and Senate to pass IRS funding bills that don't attack Direct File and don't cut the IRS's ability to enforce our tax laws.
The success of Direct File cannot be overstated:
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Over 140,000 taxpayers in 12 pilot states used Direct File this year[4]
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Users received more than $90 million in refunds
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An estimated $5.6 million was saved in tax preparation fees
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90% of users rated their experience as "Excellent" or "Above Average"
Republican-led efforts to cut IRS funding and eliminate Direct File are not isolated incidents. They represent a coordinated attack on tax fairness and enforcement that would undo all of the progress we’ve made in properly funding the IRS.
As a result of previous IRS budget cuts pushed by Republicans, the audit rates of high income filers―those with incomes of $10 million or more―dropped by 87% between 2010 and 2021. This allowed wealthy tax evaders to avoid paying what they owed while low-income households were audited at a higher rate than the rich.
The recent increase in IRS funding has begun to reverse this trend. In addition to the $1 billion collected from millionaire tax cheats just in the last year, the IRS has launched new initiatives to audit high-income taxpayers and large corporations.
Now, House Republicans are attempting to halt this progress and return to a system that favors the wealthy and well-connected. We cannot allow this to happen.
Send a message today calling on the House and Senate to pass IRS funding bills that don't attack Direct File or cut the IRS's ability to enforce our tax laws.
Thank you for your commitment to tax fairness,
Maura Quint
Campaign Director
Americans for Tax Fairness Action Fund
[1] House Republicans are attacking the IRS. Here’s how they want to cut $2 billion in funding
[2] IRS collected $1 billion in back taxes from millionaires in less than a year | CNN Politics
[3] Smith, Edwards Introduce Bill to End Unlawful IRS Direct File ProgramSmith, Edwards Introduce Bill to End Unlawful IRS Direct File Program
[4] Warren, Carper, Beyer, Porter, Sherman Lead Over 130 Lawmakers Touting Direct File’s Successes, Urges Biden Administration to Expand Program, Make Permanent
-- John's email --
John,
House Republicans are gearing up for a full-scale assault on the IRS and your right to free, simple online tax filing. Their target? The agency's enforcement capabilities and the highly successful Direct File program.
Here's what's at stake: A bill likely to be voted on in September would slash more than $2 billion from the IRS budget, undermining its ability to go after wealthy tax cheats.[1] This comes when the agency has already collected over $1 billion in back taxes from wealthy tax cheats in less than a year.[2]
Another bill, introduced in the House Ways and Means Committee, aims to block the IRS from fully implementing Direct File[3]―a program that saved Americans millions during its pilot phase this year. In fact, the Direct File pilot program was rated "excellent" or "above average" by 90% of users, with over 140,000 taxpayers in 12 states receiving more than $90 million in refunds and saving an estimated $5.6 million in tax preparation fees.[4]
These attacks come at a critical moment when the investments we made in the IRS are already paying off. The agency's enhanced enforcement capabilities are finally allowing it to tackle tax evasion by the wealthy, while Direct File is providing a free, online, user-friendly alternative to costly tax preparation services. But now, all of this progress is at risk.
The Senate will be voting on its own IRS funding bill in Committee this Thursday. Unlike the House version, it doesn't slash the agency's budget. But we need your voice to ensure it stays that way and to push back against the House's dangerous proposals.
Tell Congress: Protect IRS funding and save Direct File. We can't let wealthy tax cheats and greedy tax preparation corporations win.
The consequences of these bills would be devastating. By gutting IRS enforcement, House Republicans are essentially giving a green light to wealthy tax evaders.
This is a full-scale assault on tax fairness that would make it easier for wealthy tax cheats to avoid paying what they owe. And, by killing Direct File, Republicans would be making life harder and more expensive for everyday taxpayers, costing taxpayers billions in unnecessary fees and missed refunds.
We can't let the GOP rig the system even further in favor of the wealthy and big corporations. With your help, we can sound the alarm and stop this plan in its tracks.
Take action today and call on the House and Senate to pass IRS funding bills that don't attack Direct File or cut the IRS's ability to enforce our tax laws.
Together, we can build a tax system that works for all of us.
John Foti
Legislative Director
Americans for Tax Fairness Action Fund
[1] House Republicans are attacking the IRS. Here’s how they want to cut $2 billion in funding
[2] Smith, Edwards Introduce Bill to End Unlawful IRS Direct File ProgramSmith, Edwards Introduce Bill to End Unlawful IRS Direct File Program
[3] Warren, Carper, Beyer, Porter, Sherman Lead Over 130 Lawmakers Touting Direct File’s Successes, Urges Biden Administration to Expand Program, Make Permanent
[4] IRS collected $1 billion in back taxes from millionaires in less than a year | CNN Politics
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