IRS Watchdog Warns Against Further Funding Cuts

National Taxpayer Advocate Erin Collins highlights improved services and technology but cautions Congress that additional cuts could hinder progress.

The National Taxpayer Advocate's 2024 report emphasizes significant improvements in IRS taxpayer services, including shorter wait times and faster refunds, due to multiyear funding from the Inflation Reduction Act.
Erin Collins warns that further cuts to IRS funding, particularly for services and technology, could reverse progress and reduce efficiency in tax compliance.
The IRS collected $98.7 billion through enforcement in fiscal year 2024, but Collins argues that enhanced services and automation could reduce the need for costly enforcement measures.
Congress has already rescinded $40 billion of the original $79 billion allocated to the IRS under the Inflation Reduction Act, with additional cuts under consideration by Republican lawmakers.
Persistent challenges remain, including prolonged delays in resolving identity theft cases and a backlog of Employee Retention Credit claims, which Collins says require more resources to address effectively.