Christine Roberts Posted August 10, 2022 Share Posted August 10, 2022 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. Link to comment Share on other sites More sharing options...
Peter Gulia Posted August 10, 2022 Share Posted August 10, 2022 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 Luke Bailey 1 Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com Link to comment Share on other sites More sharing options...
Christine Roberts Posted August 10, 2022 Author Share Posted August 10, 2022 Thanks Peter. Also for us practitioners, the IRS funding is a thumb on the scale against clients tempted to play audit roulette (to mix my metaphors gratuitously). Luke Bailey 1 Link to comment Share on other sites More sharing options...
RatherBeGolfing Posted August 10, 2022 Share Posted August 10, 2022 Considering 46 billion added to current enforcement spending, I'd be surprised if some didn't trickle down to TE/GE. Not holding out hope that someone will actually answer phonecalls when a client gets an IRS love letter though... Bill Presson and Luke Bailey 2 Link to comment Share on other sites More sharing options...
Christine Roberts Posted August 10, 2022 Author Share Posted August 10, 2022 I posted on this topic at my blog https://bit.ly/3SHfRmD and thanked Peter and "other colleagues at the Benefitslink Message Boards" for sharing their thoughts about the new enforcement budget. I appreciate your input (both on these boards, and on the post, if you have any). Link to comment Share on other sites More sharing options...
Bob the Swimmer Posted August 10, 2022 Share Posted August 10, 2022 IRS will have more employees than the State Department, TSA, and one other government agency combined ! Luke Bailey 1 Link to comment Share on other sites More sharing options...
Dare Johnson Posted August 10, 2022 Share Posted August 10, 2022 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. Luke Bailey 1 Link to comment Share on other sites More sharing options...
acm_acm Posted August 11, 2022 Share Posted August 11, 2022 20 hours ago, Bob the Swimmer said: IRS will have more employees than the State Department, TSA, and one other government agency combined ! I'm not sure why one would find this surprising or an issue. Link to comment Share on other sites More sharing options...
Bob the Swimmer Posted August 12, 2022 Share Posted August 12, 2022 ACM, because IRS is projected to have 165k ees--that is a surprising number for anyone who follows this closely. Be safe. Link to comment Share on other sites More sharing options...
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