Daily Tax Update - July 9, 2013: House Bill Would Cut IRS Funding 24 Percent from FY 2013 Level

House Bill Would Cut IRS Funding 24 Percent From FY 2013 Level:  The House Appropriations Committee today released the fiscal year 2014 Financial Services and General Government Appropriations bill, which will be considered in the subcommittee tomorrow.  The bill provides annual funding for the Treasury Department and several other independent agencies.

House Appropriations Chairman Hal Rogers said, “This bill right-sizes federal agencies and programs that are simply not working efficiently or effectively, while investing in programs that directly serve the American people. From helping to prevent future inappropriate actions by the Internal Revenue Service, to encouraging small business growth, to halting wasteful or unnecessary government spending, the bill ensures that tax dollars are used wisely and where they are needed the most.”

According to the Committee summary,

“Included in the bill is $9 billion for the IRS – a 24% reduction from the fiscal year 2013 enacted level and $4 billion (30%) below the President’s budget request. Due to the recent inappropriate actions by the IRS in targeting specific political groups, as well as its improper use of taxpayer funds, the bill includes the following provisions:

  • A withholding of 10% of funds for IRS enforcement activities until all recommendations from the Treasury Inspector General for Tax Administration (TIGTA) to prevent future inappropriate targeting are implemented;
  • A prohibition on funding for conferences until all recommendations from the TIGTA on conferences have been implemented;
  • A prohibition on funding for employee bonuses and awards until a review of the effectiveness of bonus and award programs is completed;
  • A prohibition on funding for the production of videos that have not been reviewed or certified to be appropriate; and
  • Extensive reporting requirements on the use of funds.”

“In addition, the bill includes provisions to stop the IRS from implementing ObamaCare, including a prohibition on any transfers of funding from the Department of Health and Human Services for ObamaCare implementation, and a prohibition on funding for the IRS to implement an individual insurance mandate on the American people.”