Enforcement funding for tax administration

Summary#

This bill, the Stop CHEATERS Act, provides new federal funding for the Internal Revenue Service (IRS). It sends money to expand enforcement, improve taxpayer services, modernize IRS technology, and continue a business systems modernization program. The stated goal is to shift more enforcement toward high-income people and large corporations and to improve IRS capacity to detect fraud and help taxpayers.

Key changes:

  • Adds multi-year appropriations for IRS enforcement, rising from $3.6 billion in 2026 to $12.2 billion in 2031.
  • Adds multi-year appropriations for taxpayer services, about $1.4–$1.7 billion per year for 2026–2031.
  • Provides funds for technology and operations support, and for the IRS business systems modernization program.
  • Requires the IRS Commissioner to report to Congress within 1 year and then every 2 years on a plan to shift auditing and enforcement toward high‑income individuals and large corporations, recruitment of skilled auditors, and progress made.
  • Requires the Treasury Inspector General for Tax Administration to review and report on that plan and progress every 2 years after the first IRS report.

What it means for you#

  • High-income individuals and large corporations: The bill directs the IRS to plan and shift more auditing and enforcement resources toward these groups. This could mean more audits or enforcement actions for some high-income taxpayers and large firms, though the bill does not set specific audit targets.
  • Taxpayers who need help: The bill funds taxpayer services (pre-filing help, filing and account services, and taxpayer advocacy). That could improve phone, online, or in-person help, but the bill does not give details on service levels.
  • IRS employees and job applicants: The IRS could hire more auditors, investigators, and technology staff. The bill also allows hiring contractors and purchasing vehicles as part of enforcement work.
  • Businesses and tax preparers: Businesses, especially large ones, could see more IRS attention on complex returns. Preparers of high‑income or corporate returns may face more audits or requests for documentation.
  • General public and taxpayers: The bill aims to increase voluntary compliance and improve fraud detection. The bill itself does not promise specific revenue gains or lower tax rates for others; it focuses on enforcement and service capacity.

Expenses#

Estimated public cost from the bill text: about $83.7 billion over fiscal years 2026–2031.

Breakdown by purpose (FY2026–FY2031 totals shown in the bill):

  • Enforcement: $3.6B (2026), rising to $12.2B (2031).
  • Taxpayer services: $1.4B–$1.7B per year across 2026–2031.
  • Technology and operations support: $0.9B (2026) rising to $5.9B (2031).
  • Business systems modernization: $1.0B (2026) then smaller amounts through 2031.

Other fiscal details:

  • The bill says each additional amount “shall remain available until expended” (funds do not expire quickly).
  • The bill states the amounts are “in addition to other amounts” already provided to the IRS.
  • The bill does not include a revenue estimate, projected savings, or an official fiscal note in the provided text.

Proponents' View#

  • The bill appears intended to strengthen enforcement against tax noncompliance by high‑income people and large corporations.
  • It appears intended to modernize IRS technology and business systems to improve fraud detection and operations.
  • Supporters may argue that better enforcement and technology will increase voluntary compliance and make the tax system fairer by focusing on large sources of unpaid taxes.
  • The bill provides funds for taxpayer services, which could reduce filing errors and help taxpayers resolve problems sooner.
  • Requiring reports to Congress and reviews by the Inspector General provides a mechanism for oversight of how the IRS shifts enforcement and implements the plan.

Opponents' View#

  • One concern is the large cost: the bill appropriates about $83.7 billion over six years without a revenue estimate in the provided text showing whether the funds will pay for themselves.
  • The bill does not clearly explain how enforcement resources will be shifted in practice, what criteria will guide audits, or how many auditors will be hired.
  • It is unclear how the IRS will measure success (for example, targets for increased collections, audit rates, or improved service levels).
  • Increased enforcement may raise compliance costs for businesses and high‑income taxpayers, such as more documentation, longer audits, or legal disputes.
  • The bill gives little detail about privacy protections, data security, or limits on aggressive enforcement tactics tied to new technology upgrades.