HR 9736: Stop CHEATERS Act

HR 9736 in plain English: The Stop CHEATERS Act would provide multi-year supplemental funding to the IRS across four categories — tax enforcement, taxpayer services, technology and operations, and business systems modernization — from fiscal year 2026 through 2031. Enforcement funding alone would rise from $3.6 billion in FY2026 to $12.2 billion by FY2031. The bill is aimed at detecting tax fraud and noncompliance.

Stated purpose

The bill aims to give the IRS large amounts of additional funding over six years to upgrade its technology and increase tax enforcement, with a declared focus on high-income individuals and large corporations that owe but have not paid their taxes.

Key points

• Provides IRS enforcement funding rising from $3.6 billion in FY2026 to $12.2 billion in FY2031 to pursue tax cheats
• Appropriates $1.4–$1.7 billion annually in FY2026–FY2031 for taxpayer services and advocacy
• Funds technology and operations to detect fraud at $900 million in FY2026, growing to $5.9 billion by FY2031
• Allocates $1 billion in FY2026 for business systems modernization, then $300 million–$900 million in subsequent years

Arguments supporters make

• Wealthy individuals and large corporations are more likely to underreport income or use complex strategies to avoid taxes, so directing enforcement there makes the system fairer for everyone who does pay.
• Modernizing the IRS's outdated technology would make tax collection more efficient and help close the gap between taxes owed and taxes actually collected, potentially reducing the federal deficit.
• Increased funding for taxpayer services means ordinary people get better help filing correctly, reducing errors and stress for everyday filers.

Arguments opponents make

• Giving the IRS a massive budget increase could lead to expanded audits that sweep up middle-class taxpayers and small businesses despite stated intentions to focus on the wealthy.
• Billions in new government spending is not guaranteed to produce a matching return — past IRS modernization efforts have faced cost overruns and delays, raising questions about efficiency.
• Dramatically scaling up IRS enforcement power concentrates significant authority in a federal agency, which critics argue poses risks to civil liberties and taxpayer rights regardless of who is initially targeted.

Tradeoffs

The bill trades a large, certain increase in federal spending now against the uncertain future prospect of collecting more unpaid taxes; it also concentrates new enforcement power on high earners and corporations, which may deter some avoidance but raises concerns about government overreach and whether the targeting will remain as narrow as promised.

Current status in Congress: In committee.

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