Understanding the Different Notices from the IRS It’s the thing that no one wants to…
President Biden Proposes a Substantial Increase In IRS Funding
The IRS Will Increase Oversight Of High-Income & Corporate Tax Returns
The IRS may soon be coming for a lot of delinquent taxpayers – particularly those who have a lot of money and are taking steps to avoid their tax obligations. The Biden administration released a budget proposal last week that includes a $1.2 billion increase for the IRS for the 2022 fiscal year.
The budget document says that “With this funding, the IRS would: Increase oversight of high-income and corporate tax returns to ensure compliance; provide new and improved online tools for taxpayers to communicate with the IRS easily and quickly; and improve telephone and in-person taxpayer customer service, including outreach and assistance to underserved communities.”
The increase would make the IRS budget $13.2 billion. The new budget represents a 10.4 percent increase over current funding levels.
The budget also proposes a $900 million multi-year increase specifically for increasing resources for enforcing tax law. The first distribution would be $417 million.
The increased funding comes after the IRS had its budget significantly cut after criticisms from congressional Republicans. The funding will help the IRS reach its full capabilities for enforcement, and it will help make it easier for taxpayers to file their taxes and meet their obligations.
The increase was also proposed specifically to ensure that the wealthy and corporations are meeting their tax obligations. President Biden also released an American Jobs Plan that proposed using the funds raised from additional tax enforcement to invest in infrastructure.
Though the budget has not yet been approved and enforcement has not yet begun, this should serve as a warning to those who have not been paying their full tax obligation, whether for failure to report or for using questionable means to hide income and tax responsibility. Now is the time to start looking closely at your taxes and make whatever changes are necessary. You need to be prepared in case the IRS comes calling and wants to audit your taxes.
Get Help From Professional Tax Attorneys In Scottsdale, AZ
Call Silver Law PLC to talk with a tax attorney about what steps you can take now to prepare yourself and to protect your interests. An experienced tax attorney from our team will review your tax obligations and help you understand what you can do to minimize your liability, both in terms of the taxes you will pay and the penalties you may face if you are audited. We represent clients throughout the Phoenix area. Contact us today to schedule a consultation and learn more about your legal options.
7033 E. Greenway Pkwy, Ste 200
Scottsdale, AZ 85254
410 South Rampart Blvd, Suite 390
Las Vegas, Nevada 89145