With the Inflation Reduction Act (IRA) pumping $80 billion of new funding into the Internal Revenue Service (IRS), bicameral legislation sponsored last week by U.S. Sen. John Thune (R-SD) and U.S. Rep. Mike Kelly (R-PA) aims to give Congress a direct say in how those funds are spent.
“The Democrats’ attempt to supersize the IRS without holding the agency accountable to Congress and American taxpayers is dangerous and irresponsible,” Sen. Thune said. “If our bill becomes law, the Biden administration’s IRS would have to answer to the American people, not Washington bureaucrats.”
Sen. Thune on Nov. 16 introduced the IRS Funding Accountability Act, S. 5100, with 14 original Republican cosponsors, including U.S. Sens. Richard Burr (R-NC), Bill Cassidy (R-LA), Steve Daines (R-MT), Rob Portman (R-OH), Todd Young (R-IN), and Tim Scott (R-SC). Rep. Kelly on Nov. 17 sponsored his chamber’s version of the bill, H.R. 9341.
The National Taxpayers Union, Americans for Tax Reform, and Americans For Prosperity support the measure, which would require the IRS to provide Congress with an annual plan for how the agency intends to use the new IRA funds that would be subject to a new joint resolution of disapproval, according to a bill summary provided by Sen. Thune’s office.
If enacted, the bill also would require quarterly updates from the IRS and the U.S. Treasury Department to enable evaluation of the plans, provide accountability for any misuse of funds, and guard against violations of taxpayer rights, the summary says.
If timely and thorough plans or reports are not filed, then there would be financial penalties, including IRA funds being rescinded on a daily basis until the IRS complies with the reporting requirements, according to the summary.
S. 5100 has been referred to the U.S. Senate Finance Committee for consideration, while H.R. 9341 is under review in both the U.S. House Rules Committee and the U.S. House Ways and Means Committee.