Number of the Day: 5.7 Billion Dollars


The IRS’s Allocation of Inflation Reduction Act Funds

According to a recent report from the Treasury Inspector General for Tax Administration (TIGTA), the IRS has utilized $5.7 billion, equivalent to 10% of the $57.8 billion allocated from the Inflation Reduction Act as of March 31, 2024.

The Purpose of the Inflation Reduction Act

Enacted in August 2022, the Inflation Reduction Act was designed to provide the IRS with $79.4 billion over a decade to enhance taxpayer customer service, bolster capacity for evaluating complex tax returns, and modernize outdated IRS systems and technology.

Changes in Funding Allocation

Recent negotiations between the Biden administration and Republican lawmakers resulted in a reduction of the Inflation Reduction Act funding to $57.8 billion. A portion of the funds was repurposed following debt ceiling discussions and agreements made in June 2023.

Allocation of Spent Funds

Of the $5.7 billion disbursed by the IRS, the majority was allocated to operations support, taxpayer services, business system upgrades, and enforcement activities.

Breakdown of Expenditures

Additional expenditures include approximately $11.6 million for the Direct File tax return system in FY 2023 and $1.3 billion in the second quarter of FY 2024. The IRS focused its spending on employee compensation and advisory services.




Read More of this Story at www.cpapracticeadvisor.com – 2024-06-24 21:43:59

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