House voted to cut IRS enforcement budget

July 28, 2014

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This blog was last updated on June 27, 2021

On July 14, the U.S. House of Representatives voted to reduce the IRS’ budget, and a part of the cut affects the agency’s enforcement funding. The overall budget will be lowered by $1.14 billion.

According to Bloomberg, the budget cuts will leave the IRS with $9.8 billion for the fiscal year that starts Oct. 1, 13 percent shy of the current year’s funding and 21 percent short of what was requested. Reps. Paul Gosar of Arizona and Bill Huizenga of Michigan introduced the amendments that were part of a spending bill. Gosar and Huizenga proposed $353 million and $788 million cuts, respectively, to the IRS’ enforcement budget.

The National Taxpayer Advocate, the union representing IRS staff and the IRS oversight board requested more funds to aid in the enforcement of new tax information reporting obligations of the Affordable Care Act (ACA) and the Foreign Account Tax Compliance Act (FATCA), and officials at the agency have said that each dollar spent yields a $6 return. President Barack Obama appears to support that assertion by the IRS, as his administration said he would veto the bill if it passed.

Sovos

Sovos is a global provider of tax, compliance and trust solutions and services that enable businesses to navigate an increasingly regulated world with true confidence. Purpose-built for always-on compliance capabilities, our scalable IT-driven solutions meet the demands of an evolving and complex global regulatory landscape. Sovos’ cloud-based software platform provides an unparalleled level of integration with business applications and government compliance processes. More than 100,000 customers in 100+ countries – including half the Fortune 500 – trust Sovos for their compliance needs. Sovos annually processes more than three billion transactions across 19,000 global tax jurisdictions. Bolstered by a robust partner program more than 400 strong, Sovos brings to bear an unrivaled global network for companies across industries and geographies. Founded in 1979, Sovos has operations across the Americas and Europe, and is owned by Hg and TA Associates.

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