During the 109th Congress, Independent Sector worked actively to encourage Congress to allocate increased federal funding to the Internal Revenue Service, particularly for the oversight and education of tax-exempt organizations.

Learn about IS's current work to advocate for increased IRS resources.

News and Headlines -- 109th Congress

CR Funds IRS Below President's Request for FY2007 2/16/07
With lawmakers unable to reach consensus on FY2007 appropriations legislation, on February 15 President Bush signed into law a continuing resolution that will fund most federal agencies and programs through the end of the fiscal year, September 30, 2007. The Internal Revenue Service will be funded below FY2006 levels, at $10,438 million, for the remainder of FY2007. IRS enforcement will be funded at $4,661 million and taxpayer services at $2,047 million.

Independent Sector Submits Letter to President Bush 12/01/06
On November 22, 2006, Independent Sector sent a letter to President Bush, urging him to include in his fiscal year 2008 budget request continued increased funding for Internal Revenue Service enforcement and taxpayer service programs and a permanent IRA Rollover charitable giving incentive.

• View the IS letter (PDF).

Senate Committee Approves FY 2007 IRS Appropriations Bill 7/21/06
The Senate Appropriations Committee on July 20, 2006, approved legislation (H.R. 5576) allocating approximately $10.7 billion to the Internal Revenue Service for FY 2007, $82.3 million above that enacted in FY 2006 and $64.1 million above that requested by the President. Like its House counterpart, the bill would restructure the IRS by dividing it into three accounts - enforcement, taxpayer services, and operations support - and would permit the agency to transfer some funds between the accounts. The bill would allocate $4.797 billion to 'enforcement' and $2.110 billion to 'taxpayer services' in FY 2007. In comparison, the President had requested $4.762 billion for 'tax law enforcement' activities; the House approved $4.757 billion for 'enforcement' in June.

• View a summary of the bill on the Senate Appropriations Committee website.
  
  
• View Senate Appropriations Committee report 109-293 (PDF) on H.R. 5576.

Baucus Calls for Increased IRS Funding 6/21/06
Senate Finance Committee Ranking Member Max Baucus (D-MT) on June 16, 2006, submitted a letter (PDF) to Senate appropriators urging them, among other things, to appropriate increased resources to the Internal Revenue Service. In particular, Ranking Member Baucus encouraged funding for oversight of tax-exempt organizations.

House Approves FY 2007 IRS Appropriations 6/16/06
Adhering to the recommendations of the House Appropriations Transportation-Treasury Subcommittee, the full House on June 14 approved legislation (H.R. 5576) allocating $10.5 billion to the Internal Revenue Service for FY 2007, $63 million less than that appropriated in FY 2006 and $110 million below the President’s budget request. IRS Commissioner Mark Everson expressed disappointment with the legislation, noting it “would result in personnel reductions within the IRS.”

The bill would additionally restructure the Internal Revenue Service by dividing it into three accounts – enforcement, taxpayer services, and operations support – and would permit the agency to transfer up to 20 percent of funds between the accounts, providing it gives the Appropriations Committee 30 days’ notice. Within the accounts, $4.757 billion would be allocated to the 'enforcement' account, compared with $4.678 billion for ‘tax law enforcement’ activities in FY 2006. The President’s budget requested funding FY 2007 ‘tax law enforcement’ activities at $4.762 billion. $2.059 billion would be allocated to the 'taxpayer services' account.

• View a summary of the bill on the House Appropriations Committee website.
  
  
• View House Appropriations Committee report 109-495 (PDF) on H.R. 5576.

Independent Sector Calls for Increased Funding of IRS Enforcement Activities
On May 4, 2006, IS submitted testimony (PDF) to the Senate Appropriations Subcommittee on the Treasury urging lawmakers to increase FY 2007 federal appropriations for IRS tax enforcement activities. IS urged lawmakers to, at a minimum, meet the President’s FY 2007 budget request, which would increase the IRS enforcement budget by $137 million over FY 2006. IS noted that increased resources for IRS tax law enforcement would:

• Continue Congress’ recent efforts to restore the IRS enforcement program;
• Help protect the integrity and credibility of the charitable sector by providing resources to audit organizations’ annual returns and deter and penalize wrongdoers; and
• Foster greater compliance by funding additional education of charitable organizations about existing tax law.

President’s Budget, Senate Resolution Call for Increased Funding of IRS Enforcement Initiatives
The President, in the Administration’s FY 2007 budget, has requested that Congress increase the Internal Revenue Service FY 2007 tax law enforcement budget by $137 million over FY 2006. As explained by IRS Commissioner Mark Everson, this funding – a near 2 percent increase – would permit the IRS to sustain a FY 2006 increase in enforcement initiatives. The Senate, in its FY 2007 budget resolution (PDF), suggested an increase of nearly four times that requested by the Administration – $500 million over FY 2006. Similarly, the IRS Oversight Board, an independent panel charged with overseeing the IRS, has recommended a $368 million “increase for virtually all IRS enforcement initiatives.”

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Learn about IS's current work to advocate for increased IRS resources.

Last updated: February 16, 2007