For FY2006, the Bush Administration asked Congress to provide $11.649 billion inappropriated funds for Treasury operations -- or 3.8% more than the amount enacted for FY2005 (see Table 1 ). Once again, the vast share of this requested amount was to go to the IRS, whose budgetwould have totaled $10.679 billion. The other departmental offices and bureaus would havereceived the following amounts: departmental offices, $195 million; departmental systems andcapital investments, $24 million; Office of Inspector General, $17 million; TIGTA, $133 million;Air Transportation Stabilization program, $3 million; CDFI, $8 million; Treasury building and annexrepair and restoration, $10 million; FinCEN, $74 million; Financial Management Service, $236million; Alcohol and Tobacco Tax and Trade Bureau, $62 million; and Bureau of the Public Debt,$177 million. All accounts -- except those for departmental systems and capital investments andTreasury building and annex repair and restoration -- would have been funded at higher levels thanin FY2005. 3058 ) to provide funding for Treasury and a handful of other federal agencies inFY2006. Under the conference agreement on H.R. This section examines some of the key policy issuesraised by the Administration's budget request for Treasury operations except the IRS. Administration of the Community Development FinancialInstitutions Fund. To bring its proposed budget into closer alignment with IRS's major programs and most recentstrategic plan, the Administration proposed that the agency's budget be restructured beginningin FY2006. Under the proposal, the number of appropriations accounts in the IRS budgetwould be reduced from six to three: tax administration and operations (TAO), BSM, andadministration of the health insurance tax credit. For FY2006, the Administration sought $10.460 billion in appropriated funds forTAO -- or about 5% more than was spent for this purpose in FY2005; $199 million for BSM-- or 2% less than the amount enacted for FY2005; and $20 million for administration of thehealth insurance tax credit -- or 43% less than the amount enacted for FY2005. Comparedto the FY2005 budget, the Administration sought $500 million more for enforcement but $38million less for taxpayer service and $4 million less for BSM. As a result, it was difficult to make meaningful comparisons between theAdministration's budget request and the funding for IRS operations included in theHouse-passed version of H.R. 3058, the IRSwould have received $4.137 billion for processing, assistance, and management (or $80million more than the amount enacted for FY2005 but $45 million less than the amountapproved by the House); $4.726 billion for tax law enforcement (or $362 million more thanthe amount enacted for FY2005 and $145 million more than the amount approved by theHouse); $1.598 billion for information systems (or $20 million more than the amount enactedfor FY2005 and $23 million more than the amount approved by the House); $199 million forthe BSM program (or $4 million less than the amount enacted for FY2005 but the sameamount requested by the Administration and approved by the House); and $20 million foradministering the health insurance tax credit (or $15 million less than the amount enacted forFY2005 but the same amount requested by the Administration and approved by the House). On November 18, it released a conference report ( H.Rept. President Bush signed the measure on November30. Issues for Congress

The Administration's budget request for the IRS in FY2006 raised several policyissues.
The Treasury Department performs a host of critical functions as a federal agency. Foremostamong them are protecting the nation's financial system from a variety of financial crimes,administering the tax code and collecting tax revenue, managing and accounting for the public debt,administering the government's finances, and regulating and supervising financial institutions.
This report examines the President's budget request for Treasury and the Internal RevenueService (IRS) in FY2006, some of the key policy issues it raised, and congressional action on therequest. It will not be updated again.
For FY2006, the Bush Administration asked Congress to provide $11.648 billion inappropriated funds for Treasury, or 3.8% more than the amount enacted for FY2005. As usual, thevast share of the proposed budget was to go to the IRS, which would have received $10.679 billion. The remaining departmental offices and bureaus would have received the following amounts:departmental offices, $195 million; departmental systems and capital investments, $24 million;Office of Inspector General, $17 million; Inspector General for Tax Administration, $133 million;Air Transportation Stabilization program, $3 million; Community Development FinancialInstitutions Fund, $8 million; Treasury building and annex repair and restoration, $8 million;Financial Crimes Enforcement Network, $74 million; Financial Management service, $236 million;Alcohol and Tobacco Tax and Trade Bureau, $91 million; and the Bureau of the Public Debt, $177million.
The Administration budget request for IRS operations ($10.679 billion) in FY2006 was 4.3%more than the amount enacted for FY2005. To better align the request with the IRS's currentfive-year strategic plan, the Administration sought to revise the agency's budget beginning inFY2006. Under its proposal, the number of accounts would be reduced from six to three: taxadministration and operations (TAO), business systems modernization (BSM), and administrationof the health insurance tax credit. For FY2006, the Administration asked that $10.460 billion bespent on TAO, or 4.6% more than was spent for this purpose in FY2005; $199 million on BSM, or2.3% less than the amount enacted for FY2005; and $20 million on administration of the health caretax credit, or 41.5% less than the amount enacted for the current fiscal year. Compared to theamounts enacted for FY2005, the Administration sought $500 million more for enforcement but $39million less for taxpayer service and $4 million less for BSM.
The House and Senate approved somewhat differing versions of an FY2006 appropriationsbill ( H.R. 3058 ) that included Treasury and the IRS. As a result, the differences hadto be resolved in a conference committee. Under the conference agreement passed by the House andSenate on November 18, 2005, and signed by President Bush on November 30, Treasury is receiving$11.689 billion in funding (or about $40 million more than the amount requested by theAdministration); nearly 91% of that amount, or $10.671 billion, is set aside for the IRS.