Wednesday December 21, 2022 – There has been much talk in recent weeks about Republicans’ efforts to cut funding to the Internal Revenue Service (IRS). While Republicans are hailing the 2 percent reduction in IRS funding, taxpayers must understand how insignificant this cut is. Remember the Inflation Reduction Act added $80 Billion to the IRS budget over the next decade. This money will be used by the IRS to hire 87,000 new agents and expand its services. The aim of this legislation is to increase enforcement against taxpayers.
Republicans opposed the Inflation Reduction Act because they felt that it would give too much power to an already powerful agency. They argued that giving additional resources to the IRS could lead to increased government intrusion into citizens’ lives and that any cuts should be offset by reducing other spending in order to help control government spending overall.
Giving additional resources to the IRS will mean increased enforcement of tax rules and regulations. This translates into more audits and investigations as well as higher penalties for those who fail to comply with rules or pay their taxes on time.
Attorney Steven A. Leahy keeps you informed about changes in taxation laws and policies so that you can remain compliant with all regulations and Fight Back Now! Against future IRS increases. The Republican “cut” doesn’t affect the IRA funding whatsoever. All that on Today’s Tax Talk