A bill to rescind the unobligated balances of amounts appropriated for Internal Revenue Service enhancements and use such funding for an External Revenue Service.

This bill would take back all unobligated funds that were provided for Internal Revenue Service (IRS) enhancements under the Inflation Reduction Act of 2022 (specifically, section 10301 of Public Law 117-169) and redirect those funds toward the creation and operation of an “External Revenue Service.” In addition, it states, as a sense of Congress, that an equal amount should be appropriated for establishing and administering this External Revenue Service. The bill is narrowly focused on a budget reallocation and a policy objective to create a new external entity, but it does not define what the External Revenue Service would be, how it would operate, or how it would interact with the IRS or taxpayers. It was introduced in the Senate by Mr. Moreno and referred to the Committee on Finance; no further action is detailed in the text. In short, the bill proposes pulling back existing IRS modernization funds that were not yet spent and using those dollars to fund a new external agency to handle revenue services, with Congress signaling support for that external entity—though no specifics or funding mechanics are provided.