Stop CHEATERS Act

Bill Number

S. 4298

Origin Chamber

Senate

Congress

119th Congress, Session 2

Policy Area

Taxation

Status

Introduced

Latest Action

2026-04-15: Read twice and referred to the Committee on Finance.

Last Updated

2026-05-07T12:23:49Z

AI-Generated Summary

Purpose

The Stop CHEATERS Act (S. 4298) aims to provide additional funding to the Internal Revenue Service (IRS) for upgrading outdated technology, improving taxpayer services, and boosting enforcement efforts. It specifically targets tax avoidance by high-income individuals and large corporations to increase tax collection and voluntary compliance.

Key Provisions

• Enforcement Funding: Allocates escalating amounts for tax enforcement activities (e.g., audits, investigations, litigation) from fiscal year (FY) 2026 to 2031:

| Fiscal Year | Amount | |-------------|-----------------| | 2026 | $3.6 billion | | 2027 | $5.0 billion | | 2028 | $6.5 billion | | 2029 | $8.2 billion | | 2030 | $10.1 billion | | 2031 | $12.2 billion |

• Taxpayer Services Funding: Provides funds for assistance, education, filing support, and advocacy services:

| Fiscal Year | Amount | |-------------|-----------------| | 2026 | $1.4 billion | | 2027–2029 | $1.6 billion | | 2030–2031 | $1.7 billion |

• Technology and Operations Support: Funds to modernize IRS technology for better fraud detection:

| Fiscal Year | Amount | |-------------|-----------------| | 2026 | $0.9 billion | | 2027–2028 | $4.5 billion | | 2029–2030 | $4.8 billion | | 2031 | $5.9 billion |

• Business Systems Modernization: Supports new systems (excluding legacy maintenance):

| Fiscal Year | Amount | |-------------|-----------------| | 2026 | $1.0 billion | | 2027–2031 | $0.3 billion |

• All funds remain available until spent.
• Reporting Requirements:
• IRS Commissioner must submit biennial reports to Congress detailing a plan to shift audits toward high-income individuals and large corporations, recruit skilled auditors, boost compliance, and analyze the "tax gap" (difference between owed and collected taxes) by income levels.
• Treasury Inspector General for Tax Administration (TIGTA) must evaluate the plan biennially.

Significant Changes to Existing Law

• Introduces new appropriations beyond current IRS funding levels, with a focus on high earners and corporations.
• Mandates a strategic shift in IRS auditing priorities and requires detailed congressional reporting, which is not currently specified in law.
• No alterations to tax code rules; changes are primarily budgetary and operational directives.

Potential Impacts

• Government Agencies: IRS gains substantial resources for tech upgrades, enforcement (potentially increasing revenue by billions), and services, improving efficiency and fraud detection.
• Citizens: High-income individuals and corporations face heightened scrutiny, possibly leading to more audits and collections. Average taxpayers may benefit from better services and indirect revenue gains (e.g., reduced deficits).
• International Relations: None directly addressed.

Main Stakeholders

• IRS and Department of the Treasury: Primary recipients of funds and reporting obligations.
• High-income individuals and large corporations: Targeted for increased audits and enforcement.
• General taxpayers: Affected by improved services and potential broader compliance.
• Congress: Receives oversight reports.
• TIGTA: Responsible for independent evaluations.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens IRS accountability through mandatory reports and IG oversight, ensuring funds align with enforcement goals.
• Constitutional: Standard appropriations process; no apparent challenges (e.g., spending power is congressional prerogative).
• Political: Emphasizes targeting wealthy tax evaders, with bipartisan potential but introduced by Democratic senators; could spark debate on audit fairness and IRS expansion.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. King, Angus S., Jr. [I-ME]

Cosponsors (28)

Sen. Warren, Elizabeth [D-MA], Sen. Kaine, Tim [D-VA], Sen. Whitehouse, Sheldon [D-RI], Sen. Schumer, Charles E. [D-NY], Sen. Wyden, Ron [D-OR], Sen. Bennet, Michael F. [D-CO], Sen. Blumenthal, Richard [D-CT], Sen. Blunt Rochester, Lisa [D-DE], Sen. Booker, Cory A. [D-NJ], Sen. Coons, Christopher A. [D-DE], Sen. Duckworth, Tammy [D-IL], Sen. Durbin, Richard J. [D-IL], Sen. Fetterman, John [D-PA], Sen. Gallego, Ruben [D-AZ], Sen. Heinrich, Martin [D-NM], Sen. Hickenlooper, John W. [D-CO], Sen. Kim, Andy [D-NJ], Sen. Luján, Ben Ray [D-NM], Sen. Merkley, Jeff [D-OR], Sen. Peters, Gary C. [D-MI], Sen. Sanders, Bernard [I-VT], Sen. Schatz, Brian [D-HI], Sen. Shaheen, Jeanne [D-NH], Sen. Van Hollen, Chris [D-MD], Sen. Warner, Mark R. [D-VA], Sen. Welch, Peter [D-VT], Sen. Smith, Tina [D-MN], Sen. Klobuchar, Amy [D-MN]

Recent Actions

• 2026-04-15: Read twice and referred to the Committee on Finance.
• 2026-04-15: Introduced in Senate

Bill Versions

• Stop Corporations and High Earners from Avoiding Taxes and Enforce the Rules Strictly Act — issued 2026-04-15 — PDF (5 pages)