Tax revenues are expected to rise by as much as $561 billion from 2024 to 2034, thanks to stepped-up enforcement made possible with money from the Democrats’ Inflation Reduction Act, which became law in August 2022.
The Congressional Budget Office in 2022 estimated that the tens of billions of new IRS funding provided by the IRA would increase revenues by $180.4 billion from 2022 to 2031.
The IRS now says that if IRA funding is restored, renewed and diversified, estimated revenues could reach as much as $851 billion from 2024 to 2034.
The Inflation Reduction Act gave the IRS an $80 billion infusion of funds.
However, House Republicans built a $1.4 billion reduction to the IRS into the debt ceiling and budget cuts package passed by Congress last summer.
New customer service improvements rolled out as the tax season began Jan. 29, and earlier this month the IRS announced that it had recouped half a billion dollars in back taxes from rich tax cheats.
The tax gap — which is the difference between taxes owed and taxes paid — has grown to more than $600 billion annually, according to the IRS. »