House votes to rescind billions in funding to the IRS in first major majority action with McCarthy as speaker

Brooke Singman | Fox News

 

The House of Representatives voted to rescind more than $70 billion in funding to the Internal Revenue Service on Monday night, fulfilling newly elected House Speaker Kevin McCarthy's promise to prevent the agency from hiring tens of thousands of new agents and conducting new audits on Americans. 

The bill — dubbed the Family and Small Business Taxpayer Protection Act and sponsored by Rep. Adrian Smith, R-Neb., and Rep. Michelle Steel, R-Calif. — passed the House of Representatives, 221-210.

The legislation will roll back the billions of dollars of funding for the IRS approved in the Inflation Reduction Act last year but leaves in place funding for customer service and improvements to IT services.

The Inflation Reduction Act granted an $80 billion boost to the IRS over a 10-year period, with more than half of those funds approved with the intention of helping the agency to crack down on tax evasion. The funding would have gone toward filling 87,000 IRS positions. Read more here.