Family and Small Business Taxpayer Protection Act

This legislation aims to roll back a significant portion of the funding provided to the Internal Revenue Service (IRS) through the Inflation Reduction Act of 2022. Specifically, it would rescind unspent money intended for tax enforcement activities, such as audits and collections, as well as funds for general operations support. It also proposes to eliminate funding for a task force that was created to study the development of a free, government-run electronic tax filing system.

Beyond the IRS itself, the bill would cut funding for several related oversight and legal offices. This includes the Treasury Inspector General for Tax Administration, the Office of Tax Policy, and the U.S. Tax Court. If enacted, these changes would likely reduce the resources available for the federal government to monitor tax compliance and provide certain taxpayer services. Because this is a standard bill, it would require approval from both the House and Senate and the President's signature to become law.