03/23/2018

IRS Sees Funding Increase for Fiscal 2018

The omnibus spending bill provides the agency with $11.43 billion

The omnibus spending bill released Wednesday night provides the IRS with $11.43 billion, about $196 million more than its funding level for fiscal 2017.

Of those funds, $320 million is provided to the IRS specifically for implementing the new tax law enacted last December. The administration had requested nearly $400 million for tax-law implementation, most of which would go to upgrading technology and hardware.

Of note to many tax-exempt organizations, the omnibus does not include any technical corrections to fix errors in the recently-enacted tax law, nor does it prevent the IRS from using funds to enforce the Johnson Amendment, a longstanding law that prohibits churches and other 501(c)(3) groups from endorsing political candidates and otherwise engaging in political activity.

President Donald Trump has promised to repeal the Johnson Amendment, which he claims restricts religious leaders’ First Amendment rights. ASAE is part of a coalition of nonprofit organizations that opposes attempts to weaken or repeal the Johnson Amendment, which safeguards public trust in 501(c)(3) charities.

This article was provided to OSAE by the Power of A and ASAE's Inroads.