Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
IRS Budget for 2014 Focuses on Increasing Manpower to Ensure Tax Compliance
Author: Scarinci Hollenbeck, LLC
Date: May 31, 2013
Key Contacts
Back
The ramifications of the sequester may have an impact on the Internal Revenue Service’s ability to effectively audit potential tax law violators. In response, the agency is shoring up its 2014 budget to avoid auditing and compliance disruptions.
According to Fox Business, the IRS will decrease its customer service departments and operations by 1 percent and instead redistribute its funds to manage the high incidence of tax evasion and tax avoidance carried out by individuals, offshore account holders, and businesses.
Data from the Treasury Inspector General for Tax Administration reveals that the IRS requested a budget of $12.9 billion in 2014, a $1 billion increase from its operating budget in 2012. The request reveals that breakdown of the additional $1 billion, with the majority of the funding going toward increasing full-time staff to 4,572 full-time workers. The agency also plans to increase its enforcement by 6.93 percent and its operations support by 13.51 percent.
Fox Business reports that the IRS’ budget increases, if approved, will largely be used in an attempt to close the federal tax gap, which ballooned to $450 billion in 2006, from $345 billion in 2001.
Despite the potential budget increase, the agency noted recently that the furloughs and sequestration ramifications may force it to tone down audits of corporations and focus its attention on less costly investigations of high net-worth individuals and small business owners.
To help make up for the budgetary shortfalls, the agency has expanded a number of voluntary programs – including its Offshore Voluntary Disclosure Program and its Voluntary Classification Settlement Program relating to misclassified workers – to encourage more lawbreakers to come forward before an investigation is launched.
In addition, the IRS is working with several foreign countries to share account information of American offshore account holders in an effort to detect hidden income or misrepresented earnings.
- Practices: Tax and Trusts & Estates
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Are Stay Interviews the Key to Retaining Top Talent?
Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
Author: Angela A. Turiano
Why Secured Transactions Are Important
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
What is Business Law and Why Is it Important?
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.