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A bill to rescind the unobligated balances of amounts appropriated for Internal Revenue Service enhancements and use such funding for an External Revenue Service.

1/22/2025, 11:56 AM

Summary of Bill S 175

Bill 119 s 175, also known as the "Rescind and Redirect Act," is a proposed piece of legislation in the US Congress. The main purpose of this bill is to rescind any unobligated balances of funds that were previously appropriated for enhancements to the Internal Revenue Service (IRS). These funds would then be redirected and used to establish an External Revenue Service.

The bill aims to shift resources away from the IRS and towards the creation of a new agency, the External Revenue Service. This new agency would likely have a different focus and priorities than the IRS, potentially leading to changes in how tax enforcement and collection are handled in the United States.

Supporters of the bill argue that the IRS has become too bloated and inefficient, and that redirecting funds to a new agency could lead to improved tax enforcement and collection efforts. Critics, however, are concerned about the potential impact on the IRS's ability to effectively carry out its duties and the potential consequences of creating a new agency. Overall, Bill 119 s 175 is a controversial piece of legislation that seeks to reallocate funds from the IRS to a new External Revenue Service. The outcome of this bill could have significant implications for tax enforcement and collection in the United States.

Congressional Summary of S 175

Family and Small Business Taxpayer Protection Act

This bill rescinds unobligated funds that were provided by the Inflation Reduction Act of 2022 to the Internal Revenue Service (IRS) for enforcement activities related to the determination and collection of taxes, for taxpayer services, for operations support for taxpayer services and enforcement activities, for business system modernization, and for a task force to research options for a free, direct electronic filing (e-filing) tax return system. 

The bill also rescinds unobligated funds that were provided by the Inflation Reduction Act of 2022 for expenses of the

  • Treasury Inspector General for Tax Administration,
  • Office of Tax Policy,
  • U.S. Tax Court, and
  • offices within the Department of the Treasury that provide oversight and support for the IRS.

Finally, the bill expresses the sense of Congress that the rescinded unobligated funds that were appropriated to the IRS by the Inflation Reduction Act of 2022 should be appropriated for the establishment and administration of an External Revenue Service.

Current Status of Bill S 175

Bill S 175 is currently in the status of Bill Introduced since January 21, 2025. Bill S 175 was introduced during Congress 119 and was introduced to the Senate on January 21, 2025.  Bill S 175's most recent activity was Read twice and referred to the Committee on Finance. as of January 21, 2025

Bipartisan Support of Bill S 175

Total Number of Sponsors
1
Democrat Sponsors
0
Republican Sponsors
1
Unaffiliated Sponsors
0
Total Number of Cosponsors
0
Democrat Cosponsors
0
Republican Cosponsors
0
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill S 175

Primary Policy Focus

Alternate Title(s) of Bill S 175

A bill to rescind the unobligated balances of amounts appropriated for Internal Revenue Service enhancements and use such funding for an External Revenue Service.
A bill to rescind the unobligated balances of amounts appropriated for Internal Revenue Service enhancements and use such funding for an External Revenue Service.

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