Forthcoming bill from Thune to give Congress more oversight of $80B IRS funding

When the U.S. Senate returns to session later this month, U.S. Sen. John Thune (R-SD) plans to introduce a Republican-led bill that would provide Congress with more authority over how $80 billion in new funding for the Internal Revenue Service (IRS) is spent.

“If our bill becomes law, the Biden administration’s IRS would have to answer to the American people, not Washington bureaucrats,” Sen. Thune said in a Nov. 1 statement.

The forthcoming bill, which the senator said is still being finalized, also would hold the IRS more accountable by requiring it to provide Congress with an annual plan for how the agency intends to use its new funds authorized under the Inflation Reduction Act of 2022, which President Joe Biden signed into law on Aug. 16. The IRS plan would be subject to a new joint resolution of disapproval, according to a bill summary provided by Sen. Thune’s staff.

“The Democrats’ attempt to supersize the IRS without holding the agency accountable to Congress and American taxpayers is dangerous and irresponsible,” said Sen. Thune. “This legislation would provide much-needed oversight of the unprecedented $80 billion in new funding to the agency, more than half of which Democrats have directed toward enforcement-related measures, including audits.” 

U.S. Sen. Chuck Grassley (R-IA) plans to introduce the bill alongside Sen. Thune. “When Democrats’ partisan spending bill gave the IRS an extra $80 billion, their legislation included no oversight mechanisms whatsoever,” he said. “Our bill will ensure that the IRS is answerable to the American people in how it uses this money, and will force it to forfeit funds every day it’s not in compliance.”

The bill also would require quarterly updates from the IRS and U.S. Department of the Treasury to enable consistent, transparent evaluation of the IRS plan, provide accountability for any misuse of funds, and guard against violations of taxpayer rights, the summary says.

According to Sen. Thune’s office, the bill is supported by the National Taxpayers Union, Americans for Tax Reform, and Americans for Prosperity.