Promise: Repeal IRS Funding from the Inflation Reduction Act
- Koen Van Duyse
- Mar 24
- 2 min read
When: 2024 Campaign Trail, GOP debates, Truth Social
Category: IRS Enforcement, Tax Compliance
Target Group: High-Income Households, Small Business Owners, Gig Workers
📊 Status:
⚙️ In Progress (Partial rollbacks passed in GOP-led House bills, but not enacted)💬 Still a Promise
🧾 Details: The 2022 Inflation Reduction Act included ~$80 billion in additional funding for the IRS over 10 years, aimed at hiring agents, upgrading tech, and enforcing tax compliance—especially among high-income earners. Trump and GOP lawmakers have promised to fully repeal this funding, claiming it would lead to overreach and more audits for middle-class Americans.
Timeline:
✅ 2022: Funding passed as part of the Inflation Reduction Act
📜 2023–24: GOP House bills passed to rescind some funds (stalled in Senate)
💬 2024: Trump pledges full repeal if elected
🌴 Impact on Californians (esp. North San Diego):
Audit Risk: While the IRS says new enforcement targets high-income filers ($400K+), small businesses and self-employed individuals in North San Diego could face increased audit scrutiny, especially those with high deductions, real estate investments, or 1099 income.
Tax Gap Enforcement: The extra IRS funding was meant to close the "tax gap"—the difference between what taxpayers owe and pay. Repealing this could reduce the audit burden for local small business owners, but it also risks widening the federal deficit, possibly impacting future tax policy.
Digital Payments & Gig Work: The IRS has stepped up 1099-K reporting for platforms like Venmo, PayPal, Uber, Airbnb, etc. If funding is cut, enforcement of those rules may weaken, benefiting side-hustle earners in tech-savvy areas like Carlsbad, Encinitas, and San Marcos.
Customer Service: Some of the funds were earmarked for improving IRS responsiveness and e-filing systems. Repeal could mean longer wait times and more confusion for regular taxpayers needing help.
📚 Sources:
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