Thursday, February 07, 2008

More 'Resources' at the IRS?

The IRS is likely to get more money for enforcement in the budget proposal now wending its way through Congress, though exactly what that means for the Service's headcount isn't clear. Says The Wall Street Journal:
… lawmakers in both parties sound eager to give the IRS more tools to improve tax compliance and boost revenue.

In addition, Congress is expected to increase the IRS's budget, especially for enforcement activities, such as audits. President Bush asked Congress to appropriate a record $11.36 billion for the IRS for the year starting Oct. 1, according to a Treasury Department publication. That would be an increase of 4.3% from the amount enacted for fiscal 2008; spending on enforcement would rise more than 7%, the publication says.
Last month the group OMB Watch said the IRS was suffering from a lack of enforcement resources, misplaced priorities and inefficient policies. In addition,
The funding shortage has also impacted the number of staff the IRS can hire. Over the last ten years, the workforce has shrunk 18 percent, according to IRS statistics. The number of revenue agents and officers -- IRS employees who perform audits -- has decreased even faster, by 40 and 30 percent, respectively.
Stay tuned.

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