S. 4298 — Stop CHEATERS Act

This section appropriates additional amounts for IRS tax enforcement activities—including determining and collecting owed taxes, legal and litigation support, criminal investigations, and enforcement of related criminal statutes—for FY2026 ($3.6 billion), FY2027 ($5 billion), FY2028 ($6.5 billion), FY2029 ($8.2 billion), FY2030 ($10.1 billion), and FY2031 ($12.2 billion). It further appropriates additional amounts for taxpayer services—including pre-filing assistance and education, filing and account services, and taxpayer advocacy—for FY2026 ($1.4 billion), FY2027–FY2029 ($1.6 billion annually), FY2030–FY2031 ($1.7 billion annually). The section also appropriates additional amounts for the IRS Operations Support account to overhaul outdated technology and improve fraud and noncompliance detection—for FY2026 ($900 million), FY2027–FY2028 ($4.5 billion annually), FY2029–FY2030 ($4.8 billion annually), and FY2031 ($5.9 billion)—and for the business systems modernization program (excluding operation and maintenance of legacy systems)—for FY2026 ($1 billion), FY2027 ($900 million), and FY2028–FY2031 ($300 million annually). All appropriated amounts remain available until expended.

This section directs the Commissioner of Internal Revenue to submit to Congress, not later than one year after enactment and every two years thereafter, a report that (1) describes a plan to shift more IRS auditing and enforcement assets toward high-income individuals and large corporations—including recruiting and retaining skilled auditors and increasing voluntary compliance among them—and progress in implementing the plan, and (2) analyzes the tax gap (i.e., difference between taxes owed under the Internal Revenue Code and amounts collected) attributable to taxpayers at different income levels, including high-income individuals and large corporations. It further directs the Treasury Inspector General for Tax Administration to submit to Congress, not later than one year after the first such report and every two years thereafter, a report evaluating the plan and IRS progress in implementing it.