Anticipation of a fraught tax season is leading Democrats to consider more funding for the IRS to assist and educate taxpayers.
While Democrats have focused heavily on ramping up enforcement to bring in more tax dollars, another filing period complicated by the COVID-19 pandemic, new tax breaks meant to provide relief from the crisis and a lengthy backlog of unprocessed returns are putting the spotlight on years of stagnant funding for taxpayer services.
Democrats proposed an infusion of $80 billion in extra funding for the IRS over the next decade, including almost $3.2 billion for taxpayer services in the Senate version of their sweeping budget reconciliation bill. But that measure's been held up amid intraparty discord over benefits and programs in the package.
That leaves delayed fiscal 2022 appropriations as likely the fastest and surest way to infuse the department with more cash as lawmakers work across the aisle toward an omnibus spending bill. They're aiming to finish before temporary government funding runs out Feb. 18, though another short-term stopgap bill may be necessary.
[IRS: Tax filing season to start Jan. 24]
