February 17, 2012
President Obama’s fiscal year 2013 budget request would increase Internal Revenue Service (IRS) funding by about 8 percent over 2012 in an attempt to boost the agency’s enforcement and revenue collection activities.
The administration’s 2013 request for the IRS is approximately $12.8 billion, a $944.5 million increase over the FY12 enacted level. The IRS budget request includes $403 million in new enforcement activities, which the administration says will raise nearly $1.5 billion in revenue annually once new hires are fully trained and in the field.
“This is a 4.3-to-1 return on investment,” the IRS said in a release. “The return on investment is even greater when factoring in the deterrence value of these investments and other IRS enforcement programs, which is conservatively estimated to be at least three times the direct revenue impact.”
The IRS has said the proposed FY13 funding increase would enable it to focus on improving compliance by individual and business taxpayers that engage in offshore tax evasion; expand efforts to identify fraud and prevent issuance of questionable refunds, including tax-related identity theft; implement tax law changes that make use of new information reporting requirements to help address the tax gap; and enhance IRS oversight of complex financial situations, including transfer pricing and uncertain tax positions.
The IRS budget request would also provide $35 million to continue its Return Preparer Initiative, which would develop mandatory competency testing and continuing education for tax return preparers; $128 million to support IRS efforts to implement programs to ensure compliance with recent changes to the tax laws related to merchant payment cards and third party reimbursements, and the non-Exchange related tax law changes included in the Affordable Care Act.
Source: ASAE Inroads, February 16, 2012
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