Congressional Proposal Seeks $100 Billion for IRS Enforcement

A congressional proposal would allocate $100 billion to the IRS for enforcement activities. The measure targets taxpayers with net worth above $50 million and would tax unrealized gains on assets. The plan would require IRS agents to appraise the value of assets including farmland and cryptocurrency holdings. Officials would determine values at their discretion and on their timeline.

Background on the Proposal The proposal follows an earlier allocation of $80 billion to the IRS under the Inflation Reduction Act. Congress later reduced that funding by more than half. The new measure would restore and expand IRS resources to collect taxes on assets that have not been sold.

Under the plan, taxpayers would owe taxes on gains calculated at peak asset values even if values later decline. Officials have not specified how losses would be treated or whether refunds would be issued. The proposal would apply to taxpayers whose net worth exceeds $50 million.