February 14,2023

Crapo: Finance Committee Republicans are Committed to Protecting Hardworking Taxpayers from Heavy-Handed IRS

Senators introduce legislation to prevent new funding from targeting taxpayers earning below $400,000

Washington, D.C.--U.S. Senate Finance Committee Republicans, led by Ranking Member Mike Crapo (R-Idaho), reintroduced a bill to prevent the Internal Revenue Service (IRS) from using its $80 billion infusion of taxpayer dollars included in the Inflation Reduction Act (IRA) to squeeze more revenue out of hardworking taxpayers who earn less than $400,000 per year.   

“Advocates claim they do not intend for the IRS to increase audits on working families, but estimates show the IRA’s tax revenue goals for this funding cannot be met without also increasing enforcement on those making less than $400,000 per year,” said Crapo.  “Instead of unenforceable edicts, this legislation would prevent the IRS from using its new, massive supplemental funding to increase audits on small businesses and working families.”  

Estimates from the Congressional Budget Office confirmed increased audits would result in billions of dollars in additional revenue being collected from working Americans.  Other estimates from the non-partisan Joint Committee on Taxation have shown a large portion of uncollected tax revenue comes from small businesses and sole proprietors, many of whom make less than $400,000 per year.  The legislation, which Crapo and Senate Finance Committee Republicans also introduced in the 117th Congress, would codify the Treasury Secretary’s unenforceable pledge to not use IRA funding to increase audits on anyone making less than $400,000 per year.  

The bill is co-sponsored by all Senate Finance Committee Republicans.   

For bill text, click here.