On Monday, March 11th President Biden proposed a fiscal 2025 budget requesting $12.3 billion in annual funding supporting the IRS’s momentum as it builds up its enforcement efforts on both non-compliant high-net worth individuals and business entities alike.
While the proposed IRS annual funding for fiscal 2025 aligns with fiscal 2023 levels, it is a decrease from President Biden’s $14.1 billion proposal for the fiscal 2024 budget. The Biden administration drafted its fiscal 2025 budget so that total annual appropriations were in line with levels agreed to in a debt-limit law last year. The IRS Commissioner Danny Werfel has said that ‘it’s important for the IRS to receive robust annual funding to support the agency’s day-to-day operations, so that funds from the Inflation Reduction Act passed into law in August of 2022 can be used to properly modernize the IRS’. The additional $12.3 billion in annual funding will help bolster the IRS’s efforts to combat blatant fraud, update its technology systems and go after non-compliant taxpayers.
To review the Fiscal 2025 Budget in its entirety, please reference https://www.whitehouse.gov/wp-content/uploads/2024/03/budget_fy2025.pdf
Peter J. Scalise
National Partner-in-Charge, Federal Tax Credits & Incentives Practice
1040 Avenue of the Americas, 16th Floor
New York, NY 10018
Office: 212.661.8640 | Mobile: 917.822.0275
pscalise@saxllp.com | https://www.saxllp.com/team/peter-j-scalise/
