As of March 31, the IRS had spent $5.7 billion, or 10 percent, of the $57.8 billion it will receive from the Inflation Reduction Act , CPA Practice Advisor reported, citing a report from the Treasury Inspector General for Tax Administration (TIGTA).

Enacted in August 2022, the Inflation Reduction Act originally allotted $79.4 billion to the IRS over a 10-year period for the agency to rebuild and strengthen taxpayer customer service; add capacity to better evaluate complicated tax returns of high-net-worth individuals, large corporations, and complex partnerships; and update outdated IRS operating systems and technology. That figure was cut to $57.8 billion as a result of deals between President Joe Biden and then-Speaker of Kevin McCarthy (R-Calif.) so that Republican lawmakers would agree to suspend the debt limit.

Of the $5.7 billion the IRS has spent so far, $2.3 billion has been used for operations support, followed by $1.4 billion for taxpayer services, $1.3 billion for business system upgrades, and $690.9 million for enforcement. The IRS spent approximately $11.6 million in fiscal year 2023 for its free Direct File tax return system, which is included in the total amount expended, according to TIGTA.

“IRS officials indicated that $2 billion of the $5.7 billion of IRA funding expended has been used to supplement its annual appropriation because the amount the IRS received was insufficient to cover normal operating expenses,” the TIGTA report states.