James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
IRS Reports Sequester May Mean Fewer Audits
Author: James F. McDonough
Date: March 18, 2013
Key Contacts
Back
The Internal Revenue Service has been trying to close the multibillion-dollar tax gap through voluntary disclosure programs, amnesty initiatives and a higher number of audits in recent years. However, the recent across-the-board spending cuts that reduced the operating budgets of several federal agencies may have an impact on the tax agency’s ability to go after tax law violators, the IRS reports.
In a staff memo obtained by ABC News, IRS Commissioner Steven Miller wrote that the spending cuts would not impact individual and business tax return processing or refunds. However, employee furloughs, reduced hours and fewer resources to train IRS workers may result in fewer audits as they will have less staff to perform the reviews, he noted. However, reduced auditing may only impact individual filers and self-employed business owners rather than corporations and offshore tax evaders.
The IRS has entered into a number of agreements with foreign governments to help them combat tax evasion committed by Americans, which may allow them to keep up their efforts without draining their budgets. In addition, those with offshore accounts typically offer the biggest potential for chipping away at the tax gap at a more significant level.
However, the sequester also impacted another area that greatly facilitated the detection and prosecution of offshore tax evaders and corporate tax law violations: the whistleblower program. The agency announced it will be cutting whistleblower rewards by 8.7 percent as a result of the cuts. Some analysts argue that the reduction may discourage informants from coming forward, which could lead to lost opportunities for the agency to catch violators and recoup lost income, interest and penalties.
The furloughs are expected to go into effect during the summer, following the end of tax season.
- 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
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
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.