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
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Author: Donald M. Pepe
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
Author: Marc J. Comer
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Author: Jay McDaniel
Data Center, Dark Fiber, and Lit Services Agreements in New Jersey: Key Terms and Legal Pitfalls
For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
Author: George McGowan
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Author: Donald M. Pepe
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe
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.