Stop CHEATERS Act
- Sponsor
- Rep. DelBene, Suzan K. [D-WA-1]
- Committees
- Appropriations Committee (primary)
- Last action
- Jul 16, 2026
Bottom line
The 'Stop CHEATERS Act' provides substantial, multi-year funding to the IRS to boost enforcement against wealthy tax evaders, modernize its systems, and improve service for all taxpayers.
What it actually does
This bill appropriates approximately $83.7 billion to the Internal Revenue Service (IRS) over six fiscal years (FY2026-FY2031) to enhance tax enforcement, improve taxpayer services, and modernize its technology infrastructure. A significant portion of the funding is directed towards increasing enforcement activities specifically targeting high-income individuals and large corporations, alongside substantial investments in overhauling outdated IRS technology and improving taxpayer assistance.
Proponents argue
Proponents argue that this bill is a critical investment to close the 'tax gap'—the difference between taxes owed and taxes collected—by equipping the IRS with the resources needed to audit complex returns from high-income individuals and large corporations. They contend that increased enforcement will generate significant revenue, far outweighing the cost of the appropriations, while improved technology and taxpayer services will benefit all Americans by making tax interactions more efficient and less burdensome.
Opponents contend
Opponents typically express concerns that increased IRS funding could lead to overreach and harassment of ordinary taxpayers and small businesses, regardless of stated targeting. They may argue that the IRS already has sufficient resources or that the proposed enforcement measures could stifle economic activity. Critics might also question the effectiveness of such large appropriations in achieving the stated goals or raise concerns about government spending.
The bill is short and clearly structured, making it accessible for a quick read and easy to understand its core provisions.
Section 2(a)
Enforcement Appropriations
This provision appropriates a total of $45.6 billion over six fiscal years (FY2026-FY2031) for IRS tax enforcement activities. These funds are specifically designated to pursue objectives such as determining and collecting owed taxes, providing legal and litigation support, conducting criminal investigations, and enforcing criminal statutes related to tax and financial crimes. The bill explicitly links these activities to a plan to shift auditing and enforcement assets toward high-income individuals and large corporations.
Supporters argue
Supporters argue that this funding is essential to combat sophisticated tax evasion by the wealthiest individuals and largest corporations, who often have the resources to exploit loopholes or engage in complex schemes. They contend that this investment will yield a high return in recovered tax revenue, ensuring a fairer tax system and reducing the national debt.
Critics contend
Critics may argue that such a significant increase in enforcement could lead to an overly aggressive IRS, potentially burdening legitimate businesses and individuals with audits, even if the stated intent is to target high-income earners. They might also express concerns about the potential for government overreach and privacy implications.
Tradeoffs
The provision balances the need to recover lost tax revenue and ensure fairness in the tax system against concerns about the scope and power of government enforcement agencies and potential burdens on taxpayers.
Section 2(b)
Taxpayer Services Appropriations
This provision appropriates a total of $9.6 billion over six fiscal years (FY2026-FY2031) for IRS taxpayer services. These services include pre-filing assistance and education, filing and account services, and taxpayer advocacy services. The aim is to improve the overall experience for taxpayers interacting with the IRS.
Section 2(c)
Technology and Operations Support Appropriations
This provision appropriates a total of $25.4 billion over six fiscal years (FY2026-FY2031) for the IRS's 'Operations Support' account. These funds are specifically for overhauling outdated technology and improving the IRS's capacity to detect fraud and noncompliance. This aims to modernize the agency's core operational infrastructure.
Section 2(d)
Business Systems Modernization Appropriations
This provision appropriates a total of $3.1 billion over six fiscal years (FY2026-FY2031) specifically for the IRS's business systems modernization program. These funds are explicitly *not* for the operation and maintenance of legacy systems, focusing solely on developing and implementing new, modern business systems.
Section 3
Reports to Congress on Enforcement Strategy and Tax Gap Analysis
This section mandates that the Commissioner of Internal Revenue submit a report to Congress annually for the first year, and biennially thereafter. This report must detail a plan to shift auditing and enforcement assets towards high-income individuals and large corporations, recruit and retain skilled auditors for these targets, and increase voluntary compliance among these groups. It also requires an analysis of the tax gap attributable to different income levels. Additionally, the Treasury Inspector General for Tax Administration (TIGTA) is required to submit biennial reports evaluating the IRS's plan and progress.