IRS claims it can find “no records” on an $80 billion increase in its budget

Agency that can’t find who leaked private taxpayer info also asserts no one in the agency discussed additional funds and 87,000 new employees provided in “Inflation Reduction Act.”

August 9, 2022

(Washington, DC) – Today, the Functional Government Initiative (FGI) announced transparency litigation against the Internal Revenue Service (IRS) after the agency amazingly declared it had no records regarding an $80 billion proposed funding increase and an additional 87,000 employees included in the economic package referred to by its proponents as the “Inflation Reduction Act.” The proposals for drastically increased funding and staffing for the IRS were originally included in the Biden Administration’s fiscal year 2022 budget request.

Earlier this year, FGI began investigating the administration’s plan to flood the IRS with more taxpayer dollars for more agents and other things supposedly to increase compliance. The massive influx to the IRS would come amidst ongoing controversies of alleged political targeting and leaking of sensitive financial data. The original proposals also included a controversial attempt to monitor private transactions of more than $600, which would have affected nearly every taxpayer.

The IRS recently replied to FGI’s request for information by stating they have “no records” regarding any economic analysis, request for new agents, or resources, and they closed our case. With this response, the IRS is astonishingly claiming that it performed no analysis, there were no internal discussions and not a single mention by agency officials of these proposals, and there were no communications between IRS officials and the White House and Treasury officials regarding a plan to nearly double its budget and personnel. This would also indicate the agency has absolutely no plan for what to do with the additional funds, personnel, or resources.

After careful consideration, FGI is filing suit against the IRS to reveal what is really going on with these controversial proposals. We seek to uncover records if they do, in fact, exist. If it is true that the IRS has no records on this proposal, then Americans deserve answers regarding the dysfunction involved in keeping the IRS completely in the dark about a massive increase in the agency’s funding, staff, and resources.

Peter McGinnis, spokesman for FGI, issued the following statement:

“Not conducting an economic analysis or having any communications, not even a single email regarding one of the largest budget increases in agency history is hard to believe. If true, then it only goes to show that government spending has become so reckless that agencies are being handed billions of taxpayer dollars without first consulting with them about how those dollars will be spent. With all of the incredible dysfunction at the IRS – targeting organizations for political views, releasing taxpayer data they had promised to keep private – it is not surprising they would report they knew nothing about this proposal, but it should disturb every American.”