By Michael Rozbruch | October 27, 2011
As always I advise my readers to stay ahead of the curve when it comes to tax news and changes to help you stay out of tax problems in the future. So, as a heads up to everyone out there, I am reiterating a post from my Tax Resolution University blog on the new budget cuts that the IRS is facing:
Budget cuts are a common topic these days regarding anything surrounding the United States government, so it goes as no surprise to hear that the IRS is next on the list of drastic budget reductions. On the Wall Street Journal’s blog The Tax Blog, Jonnelle Marte keeps us informed on the latest news in her post IRS Cuts: Good News for Deadbeats?
According to the article, Congress plans to reduce the IRS budget by $500 million in 2012. This drastic cut back in governmental funding will likely prove to be a huge problem for the IRS, which impacts taxpayers across the nation.
Marte summarizes a quote from commissioner Douglas Shulman in which he says the budget cuts “would lead to a 5% to 8% decrease in collection efforts, including audits, which would reduce revenue by about $4 billion.”
And while slacker taxpayers may find a secret joy in the budget cuts, the rest of us can expect sluggish customer service, account resolution slow down and issues organizing payment plans etc.
As we always advise our readers, staying up to date on tax news and laws is a great way to stay ahead of tax problems in the future, especially during a time in which taxpayers can be expecting great delays in the IRS processing.