Recent clawbacks in IRS funding and significant workforce reductions are having a tangible impact on the agency's ability to serve taxpayers and enforce the tax code. According to the National Taxpayer Advocate's 2026 mid-year report and recent economic analyses, these cuts have led to several critical service and operational challenges. Some complaints include declining customer service, processing and refund delays, severe backlogs in identity theft resolution and reduced enforcement and lost revenue. In response to these operational declines, congressional Democrats are actively pushing to restore the $83 billion in IRS funding that was previously rescinded. Representatives Suzan DelBene, Terri Sewell, Judy Chu, and Ro Khanna recently introduced the "Stop CHEATERS Act" (Stop Corporations and High Earners from Avoiding Taxes and Enforce the Rules Strictly Act). The legislation seeks to reallocate the $83 billion to rebuild the agency's capacity which would be spent as follows: -$45.6 billion for enforcement efforts to target high-income tax evaders and large corporations. -$25.4 billion for technology and systems modernization. -$9.6 billion for taxpayer services improvements. -$3.1 billion for business systems enhancements. The lawmakers argue that restoring these funds is essential not only for improving basic taxpayer services but also for closing the tax gap. Proponents cite analyses estimating that properly funding IRS enforcement could generate nearly $1 trillion in revenue over the next decade.