In its current form, the IRS has managed to make life quite difficult for thousands of business owners and taxpayers across the country. If you have ever dealt with an IRS dispute, you know exactly what we mean. The IRS is often referred to as the world’s “most brutal collection agency” thanks to their aggressive tactics of debt collection.
And now, it appears likely that the agency will become even more powerful in the near future. The Washington Post reports:
The IRS would receive additional money for taxpayer services and tax law enforcement, and several financial regulatory agencies also would see funding increases to help them enforce Wall Street reforms, under a spending bill approved Tuesday by a Senate panel.
The Senate bill would provide $12.5 billion for the IRS in fiscal year 2013 which starts in October, an increase of 6 percent from the 2012 level but still 2 percent below the White House request.
“Resources provided will allow the IRS to meet an increasing demand for services and to make improvements that will permit taxpayers to access automated self-service applications including refund inquires, freeing staff to handle more complex tax law inquiries. Funds will also support an array of compliance activities to address offshore tax evasion, reduce the under-reporting tax gap, combat tax-related identity theft, strengthen return preparer compliance, and restore revenue lost as a result of past reductions to examinations and collection programs,” the bill summary says.
“The IRS’s ability to fulfill its critical mission has been threatened the last two years by a lack of resources,” said President Colleen M. Kelley of the National Treasury Employees Union, who called it counterproductive to restrict IRS funding so much that it hampers tax collection.
Of course, all of us would agree that tax fraud must not be tolerated. Unfortunately, it often seems like the IRS does not distinguish between deliberate tax fraud and innocent mistakes—and the likely result of this budget increase is more stress for taxpayers who have made innocent mistakes. If you’d like to learn more, or if you are currently engaged in a dispute with the IRS and would like help resolving the situation, please get in touch with us today!
Additional Readings
As a business owner, you know everything there is to know about your industry. You could be an expert on your specific business, but how much do you know about business taxes? If you are like other business owners, you might not know a lot. Luckily, there are professionals who can guide you through the basic and specific tax...
If your loved one recently passed away, you may have many questions about filing income tax for them. Perhaps the most important thing is to understand that you are not alone. Dealing with a deceased’s unpaid taxes can be challenging. For example, who is responsible for paying taxes when someone dies? Do IRS debts go...
If you have a tax balance with the IRS, you may be wondering if you can get a passport. While having your passport renewal denied or revoked is a possibility, it depends on the amount you owe the IRS. If your taxes become seriously delinquent, the IRS can take action against you, leading to the...
Most employers in the United States completely shut down or suspended operations during the COVID-19 pandemic. To help such businesses, the federal government implemented various policies, including the Employee Retention Tax Credit (ERTC) or Employee Retention Credit (ERC) program. However, it can take the IRS months to process claims because of the number of applications the...
If you’re a small business owner, you’ve probably heard about sales tax. Knowing how to collect, record and remit sales tax can be complicated, especially as your business grows. Keeping up with changing tax regulations can also be challenging. Paying sales tax for your small business is essential because failing to do so can result...
The Employee Retention Credit (ERC), also known as the Employee Retention Tax Credit (ERTC), will unveil some major changes at the start of 2024. Starting in September of 2023, the IRS Commissioner placed a moratorium on new ERC applications through the end of the year, giving the IRS time to update its guidelines and develop a new...