Good news for the IRS: the government agency recently received a significant funding boost from Congress, and they are more willing to bump up funds in light of the recent tax bill. The $23.4 billion dollar spending bill easily made it through a vote from the House Appropriations Committee.
While the new bill targets multiple agencies, the IRS plays a central role, receiving $11.6 billion in funding. This represents a $186 million increase over last year.
The new funding is intended, in part, to help enact the recently passed tax bill. But what does this mean for the average taxpayer — and more specifically, what does it mean for business owners? Read on to find out.
Better Customer Service From the IRS
Theoretically, the new spending bill will improve taxpayer interactions with the IRS. This is one of two critical goals that the subcommittee highlighted in boosting IRS funding. It’s not clear, exactly, how customer service would improve. Taxpayers would likely enjoy better access to representatives capable of answering tax-related questions.
Increased Pursuit of Unpaid Taxes
Everybody can appreciate improved customer service, but not all taxpayers will be happy about the subcommittee’s other priority: “reversing the tax gap — the amount owed but not paid.” Top subcommittee Democrat Christopher Coons explained, “We must continue to make progress in closing the $400 billion tax gap.”
Equipped with increased funding, the IRS may become more aggressive in collecting unpaid taxes. This could mean more audits, more Trust Fund Recovery Penalty notifications, and so on.
Now that the IRS boasts considerable funding, it’s more important than ever to seek trustworthy tax representation. The Highland Tax Group can provide the protection you need; call 720-398-6088 today to learn more.