Internal Revenue Service Appropriations, FY2024 (CRS Report for Congress)
| Release Date |
Revised April 8, 2024 |
| Report Number |
IF12440 |
| Report Type |
In Focus |
| Authors |
Gary Guenther |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
The Internal Revenue Service (IRS) is responsible for (1)
collecting most of the revenue to fund federal government
agencies and programs and (2) enforcing taxpayer
compliance with federal tax laws through activities like
taxpayer assistance and audits. According to FY2022 data,
the agency processed nearly 263 million tax returns and
related forms, collected $4.9 trillion in gross revenue, and
issued refunds totaling nearly $642 billion.
The IRS’s operating budget is a mix of annual
appropriations and miscellaneous receipts. In FY2023,
appropriations accounted for 75% ($12.3 billion) of the
budget. The remaining 25% ($4.2 billion) came from
unobligated balances from previous years, reimbursable
items, and $2.8 billion in mandatory funding provided by
P.L. 117-169 (also referred to as the Inflation Reduction
Act, or IRA); more details on the IRA’s impact on IRS
funding are provided below. The IRS has considerable
leeway in its use of miscellaneous funds.
IRS appropriations are distributed among four accounts:
taxpayer services, enforcement, operations support, and
business systems modernization (BSM). As Table 1 shows,
enforcement was the largest of the four in FY2023,
accounting for 44% of enacted appropriations.
