If You Think the IRS Is Slow Now Just Wait Till…
Essex & Associates::www.essexinc.biz July 5, 2011
Greetings!
The House Appropriations Committee met and passed the tentative budget for next year for the IRS.
The White House had requested $13.3 billion. The House Appropriations Committee released its Fiscal 2012 Financial Services and General Government Appropriations Bill.
It included $11.5 billion for the IRS. That represents a cut from the current year of over $606 million.
The IRS cut would be approximately 5.5% of the budget. IRS Commissioner Douglas Shulman spoke to a Senate Appropriations Subcommittee earlier in the month.
He stated that a cut in the IRS budget would reduce revenue collections.
The ranking member on the House Appropriations Committee is Rep. Norm Dicks (D-WA). He opposed the cut and noted, "At this level, enforcement and customer assistance of the IRS would be adversely affected.
The agency estimates that as many as 4,100 employees would have to be furloughed. The IRS estimates that this cut will end up costing $4 billion per year due to the lack of enforcement on tax laws."
The House Budget will eventually be modified in a conference with the Senate. It seems quite possible that a portion of the IRS budget may be restored.
However, it is clear that the IRS will operate with leaner budgets in the future
Wishing you many happy returns,
Wayne
Wayne T. Essex Ph.D.
Essex & Associates
Tax, Accounting, HR, Payroll
7501 Paragon Road
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