Congress Enacts Stopgap Funding Bill Maintaining IRS Operations Through Mid-December
Congress has approved a short-term spending bill to fund federal operations through mid-December, maintaining existing budget levels for the Internal Revenue Service and averting a government shutdown. The House of Representatives passed H.R. 6500, titled the Continuing Appropriations and Extensions Act, 2027, by a vote of 370–48. The measure, which the Senate previously approved in a 90–6 vote on August 8, was sent to the president for signature to prevent agency closures when the prior fiscal deadline arrived on September 30.
Under the stopgap measure, the IRS will keep its current annualized budget baseline of $11.2 billion through December 11. In addition to preserving base operational funds, the finalized legislative text blocks a secondary budget rescission of more than $11.6 billion targeting the agency during the continuing resolution period. That potential reduction was prevented after the Senate incorporated specific protective language into the bill, which the House subsequently adopted.
This statutory protection follows prior congressional reductions to IRS resources. An initial rescission was enacted in February under the Consolidated Appropriations Act, 2026 (P.L. 119-75). The overall trajectory reflects ongoing adjustments to multi-year agency funding: while the Inflation Reduction Act of 2022 (P.L. 117-169) originally allocated $79.4 billion in supplemental funding over ten years, legislative actions reduced that supplemental total to $26 billion available through September 30, 2031, according to a March report by the Treasury Inspector General for Tax Administration.
For taxpayers, corporate finance departments, and property investors, the passage of the continuing resolution provides operational certainty through the mid-autumn tax period. Key agency functions, including processing tax returns, issuing administrative guidance, handling audit responses, and managing taxpayer service operations, will continue without the disruptions or furloughs that typically accompany a federal lapse in appropriations.
One concrete practical implication is that taxpayers currently engaged in audits, appealing administrative determinations, or submitting ruling requests can maintain standard communication and procedural timelines through early December. The temporary nature of H.R. 6500 means that long-term operational and enforcement capacity remains uncertain beyond December 11, when lawmakers must either enact full-year appropriations or pass another extension.
Source: Journal of Accountancy
