Stopping IRS Overreach in Its Tracks

As we near the final days of tax season, customer service at the IRS is on the minds of many Americans. Most Americans work hard and pay their taxes in good faith, yet in Fiscal Year (FY) 2023, 32 percent of customers said they were dissatisfied with their experience with the agency's Independent Office of Appeals. Sadly, these rates have trended in the wrong direction since Democrats poured $80 billion into the IRS to hire 87,000 new agents in 2022. In FY21 just 19 percent of taxpayers reported dissatisfaction with the IRS.

I continue to champion efforts to hold the IRS accountable and focus on improving customer service. The most recent government funding legislation I supported reduced this funding by another $20.2 billion. In fact, I sponsored legislation previously passed by the House to reclaim the entire $80 billion. Rather than hiring agents to supersize "enforcement" and audits, the IRS should be doing everything possible to maximize efficiency and excellent service.

In March, the Treasury Inspector General for Tax Administration (TIGTA) released a report detailing how the IRS inappropriately diverted $4.6 million to maintain outdated technology systems. These funds had been designated for systems modernization and were legally prohibited from being redirected to legacy systems.

Updates to IRS technology are needed to better protect Americans' personal data and serve taxpayers. The misuse of tax dollars to maintain business as usual was a hallmark of the Biden administration's misaligned priorities. The past administration pursued unauthorized tax prep services and schemes to audit more Americans across the income spectrum, including the 1099-K Babysitter Tax and other new ways to audit tips received by service workers.

Another March TIGTA report found the IRS underreported the cost of its unauthorized pilot program to compete with existing free tax preparation providers. Through this program, the Biden administration sought to increase the IRS's intrusion into the private finances of Americans to an unprecedented degree. This in-house tax preparation program has not been authorized by Congress, and having the tax enforcement and collection agency calculating how much a given taxpayer owes raises serious conflict of interest concerns.

Too often, the IRS and the taxpaying process are clouded by an air of suspicion. The last thing American taxpayers need is an IRS calculating tax liability with no incentive to ensure they are not accidentally overpaying, while simultaneously threatening to audit them. I am the lead sponsor of a bill to eliminate this so-called Direct File program.

We should be crafting policy which modernizes systems and improves customer service at the IRS, not creating costly redundancies which put the IRS into the role of both tax preparer and tax auditor. The IRS Free File program is an existing option for taxpayers who wish to file their taxes for free. More than 70 percent of American tax filers qualify to use Free File. I encourage you to visit irs.gov/FreeFile to confirm your eligibility and learn more.

Through Free File, which is authorized by Congress, Americans can file their federal taxes through private third parties without cost to themselves, virtually no cost to the federal government, and minimal administrative burden to the IRS.

Law-abiding middle-class taxpayers and small businesses should not live in fear of a burdensome, unnecessary audit from an overreaching IRS. Free File fills a need for taxpayers in an efficient, cost-effective way-just the sort of thing we should be doing more of in Washington.

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