Federal Tax Enforcement: Past, Present And Future

A ccording to its mission statement, the Internal Revenue Service seeks to "[p]rovide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all." This column has previously detailed how budget cuts over the past decade have made it more difficult for the IRS to execute this mission. See Jeremy H. Temkin, Deterrence in an Age of Dwindling Enforcement, New York Law Journal (March 15, 2018); Jeremy H. Temkin, Internal Revenue Service Budget Cuts Spell Trouble, New York Law Journal (Jan. 22, 2015).

The Inflation Reduction Act, which was signed into law last month, reverses the trend of diminishing resources by including almost $80 billion in additional funding for the IRS over the next 10 years. This new funding offers the prospect of enhanced civil and criminal tax enforcement as the law's effects are fully felt and thus presents a good opportunity to consider the