House Republicans are seeking to make good on their campaign promise to rein in the IRS with cutbacks built into the debt ceiling and budget cuts package moving through Congress.

The bill rescinds $1.4 billion given to the federal tax collector in the Democrats害羞草研究所� health and energy package that was approved last year on party line votes. The White House says the debt deal also includes a separate agreement to take $20 billion from the IRS over the next two years and divert those funds to other nondefense programs.

Democrats expended a lot of political capital to get the IRS more money last year. They faced an onslaught of campaign ads, many of them misleading, about the expected hiring of87,000 害羞草研究所渘ew agents害羞草研究所� to target low- and middle-class Americans.

Now, Biden administration officials are offering assurances that the spending cuts secured by Republican negotiators will have minimal impact on the agency害羞草研究所檚 operations over the next few years.

The agency is on course to still get nearly three-quarters of the $80 billion boost that Congress approved for it last year. And the agency has the flexibility to spend some of that money sooner than planned, officials stressed.

害羞草研究所淭he IRS has the resources it needs in the near term to improve customer service and go after wealthy and corporate tax evaders,害羞草研究所� Deputy Treasury Secretary Wally Adeyemo tweeted.

But for Republicans looking to win support for the bill, the spending cuts for the IRS represent a critical selling point. The first bill that House Republicans passed this year would have rescinded most of the extra dollars Congress had approved for the IRS the year before. The bill has gone nowhere in the Democratic-controlled Senate.

As for the debt deal, 害羞草研究所渨hat this does is put the IRS at the forefront,害羞草研究所� said Rep. Patrick McHenry, R-N.C., one of the lead GOP negotiators.

害羞草研究所淲e have a down payment in this bill of $1.4 billion to rescind their enforcement hiring this fiscal year,害羞草研究所� McHenry said. 害羞草研究所淚n the appropriations process, we害羞草研究所檒l come back for more.害羞草研究所�

In April, IRS leaders released details on how the agency would use the $80 billion infusion for improved operations, pledging to invest in new technology, hire more customer service representatives and expand its ability to audit high-wealth taxpayers. The plan lays out the specifics of how the IRS would allocate the $80 billion through fiscal year 2031.

Now, with some of that money clawed back, there is a question about what programs may take a back seat. Treasury officials say their plan to develop an online free file tax return system, which is in its pilot development stage, for instance, will not be impacted by the cuts.

But some analysts are skeptical about the Biden administration害羞草研究所檚 assurances. Steve Rosenthal, senior fellow at the Urban-Brookings Tax Policy Center, said 害羞草研究所渢he loss of the funds has to be a setback害羞草研究所� for the agency.

害羞草研究所淲ith less money and resources, everything will slow down. It just may take a while longer害羞草研究所� to develop certain promised programs, he said. 害羞草研究所淚 don害羞草研究所檛 know if this will come out of service, enforcement, technology or otherwise.害羞草研究所�

Rep. Richard Neal of Massachusetts, the top Democrat on the House Ways and Means Committee, said he spoke with the Treasury about the impact of the debt limit bill害羞草研究所檚 IRS funding cuts: 害羞草研究所淚 came away, if not happy, at least satisfied.害羞草研究所�

He said the potential for a default was a far greater concern, so he understood why the White House agreed to the cuts.

害羞草研究所淭he fact that the money is going to be diverted to other initiatives is not my first choice, but I think to get this over the goal line, in terms of the contrast of an international calamity, that has to be done,害羞草研究所� he said.

Neal said he believes the IRS won害羞草研究所檛 be greatly harmed as a result of the cuts, adding, 害羞草研究所淭hat害羞草研究所檚 what I害羞草研究所檝e been assured.害羞草研究所�

The Congressional Budget Office has projected that the $1.4 billion rescission will actually increase deficits by about $900 million over the next decade because it will lead to less tax revenue coming in. 害羞草研究所淐BO anticipates that rescinding those funds would result in fewer enforcement actions over the next decade and in a reduction in revenue collections,害羞草研究所� states May 30 report to Speaker Kevin McCarthy, R-Calif.

The CBO害羞草研究所檚 projections did not include the $20 billion that the White House agreed to divert to other programs.

Rep. Brendan Boyle, the top Democrat on the House Budget Committee, said former President Donald Trump害羞草研究所檚 own appointed IRS commissioner repeatedly brought up to Congress the dramatic staffing shortages the agency was experiencing. The IRS害羞草研究所檚 enforcement staff has shrunk by about one-third since 2010, and Boyle said that has led to lower-income and minority taxpayers being audited at a higher percentage than the wealthy.

害羞草研究所淚害羞草研究所檓 very concerned that some of these cuts could impact the direction the IRS wants to go, and that is bring more fairness when you talk about audits,害羞草研究所� Boyle said. 害羞草研究所淭hat is certainly an area over the weeks and months ahead that I害羞草研究所檓 going to be following up on.害羞草研究所�

Arguing for the IRS cuts shortly before the House vote Wednesday night, Rep. Garret Graves, R-La., lauded the Republican effort.

害羞草研究所淚 have never had a constituent say, 害羞草研究所楪osh, I wish I could have more audits,害羞草研究所櫤π卟菅芯克鶟 Graves said.

Fatima Hussein And Kevin Freking, The Associated Press

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