IRS Budget Cuts Could Cost Government Billions


The government is set to reduce the allocation for the IRS in the budget, a move that the IRS warns could cost the country billions of dollars in lost taxes. The move to cut hundreds of millions of dollars from the IRS budget could in turn result in a severe reduction of IRS services to taxpayers and cost up to $4 billion in lost revenue annually, according to IRS Commissioner Doug Shulman. Shulman issued a letter to lawmakers in which he said the budget cuts “would lead to noticeable degradation of both service and enforcement and would have a serious detrimental impact on voluntary compliance for years to come.”

At a time when the annual budget deficit has reached its highest ever level of $1.3 trillion, the government is searching for ways to reduce costs.

The IRS was allotted $11.5 billion through a bill passed by the House Appropriations Committee for the fiscal year 2012, which started October 1. The amount was $600 million less than the allocation last year and $1.8 billion less than what President Obama asked for. On the other hand, The Senate Appropriations Committee version of the bill would provide $11.7 billion.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Darrin Mish, Tampa Tax Attorney, The Law Offices of Darrin Mish, P.A. | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.