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Increased TE/GE Enforcement


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Has anyone had any information as to the degree the IRS budget increase under the Inflation Reduction Act will flow down to TE/GE division and possibly impact plan audit activity?  I read Chuck Rettig's letter about not focusing on small taxpayers but do we know anything about allocation of these funds and the degree to which it will impact plan enforcement?  Any comments and surmises welcome.

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The descriptions are wide. Several appropriations are for multiple purposes without a breakdown within an appropriation. The Commissioner has discretion.

See § 10301, https://www.congress.gov/bill/117th-congress/house-bill/5376/text?q=%7B%22search%22%3A%5B%22hr5376%22%2C%22hr5376%22%5D%7D&r=1&s=1

One useful (but small) appropriation is $104,533,803 “to carry out functions related to promulgating regulations under the Internal Revenue Code of 1986[.]”

The legislation is good news for many of my students. Demand for tax advice and related services, and for a better quality of advice, goes up if business organizations believe a tax return might be examined.

https://www.irs.gov/pub/irs-utl/commissioners-letter-to-the-senate.pdf

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

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First the IRS has to find the employees, then train them.  I think this new batch of agents will have their hands full for the next 5 years auditing the Employee Retention Credit - this is an easy target and they can raise a lot of revenue clawing the refunds back and adding penalties and interest.

Hopefully they will leave TE/GE alone.

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