The Inflation Reduction Act, which recently passed the House and the Senate, puts $80 billion toward expanding the Internal Revenue Service (IRS). More than half of the funds will go toward expanding the enforcement division that conducts audits on individual and corporate tax returns. Currently, corporations making over $20 billion are audited the least of any size company but make up the largest share of additional tax revenue from audits.
The IRS’s budget has remained about the same since the 1990s, despite processing more returns every year. The $80 billion expansion is nearly six times the size of the IRS’s current annual operating budget and expires in 2031.
