The IRS could face another budget cut this year. The House recently passed legislation that would reduce funding for the tax agency by approximately $1.1 billion for the current fiscal year (through Sept. 30). That’s about 9% below the IRS’s current funding level. Overall, the bill would allocate nearly $11.2 billion, down from around $12.3 billion for 2025. More specifically, it would provide roughly $5 billion for tax enforcement (down from $5.4 billion for 2025), $3.2 billion for technology and operations support (down from $4.1 billion for 2025), and $3 billion for taxpayer services (up from $2.8 billion for 2025). A vote on the bill in the Senate is still to come.
