ABMA co-signed a coalition letter to Congress on Monday strongly supporting the Family and Small Business Taxpayer Protection Act. This legislation would rescind the Inflation Reduction Act of 2022’s funding for the Internal Revenue Service’s (IRS) expanded enforcement and penalty efforts.

The letter stated:

“It is disheartening that Congress would earmark $45.6 billion (58%) for enforcement efforts while only providing $3 billion (4%) for taxpayer services from the $80 billion allocated to the IRS in the Inflation Reduction Act of 2022. Before considering how to penalize taxpayers, the agency should address the immense backlog facing the agency and how to better assist taxpayers with compliance.”

The Family and Small Business Taxpayer Protection act (H.R. 23) passed the House this week on a 221-210 vote. If enacted, the bill would retain enough funding for the IRS to invest in better serving taxpayers by modernizing its operations.