Originally published in the Michigan Business Law Journal:
In well-publicized news, Congress approved a $10.9 billion budget for the IRS for FY 2015. This is a cut of $346 million and well below the $13.6 billion budget request by the IRS Oversight Board and below the President’s $12.5 billion request. By comparison, the funding amount for the IRS in FY 2009 was $11.9 billion. IRS Commissioner John Keskinen has already predicted the loss of 1,800 employees through attrition, a reduction in the number of examinations, and possibly at least two furlough days for all IRS employees.
The purpose of this column is not to debate the wisdom or merit of the budget but, rather, to explore the practical impact for practitioners (not just tax) and our clients. The overall impact may surprise some people.
First, everybody, and I mean everybody, whether individual or entity, for profit, nonprofit, corporation, partnership, or something else must deal with the IRS. Why? That is the law. If your clients ever earn any income or expect to collect social security, use Medicare, sell assets, or have a savings account, they will have some contact with the IRS. So what can we expect?
Read the article in its entirety: IRS Budget Cuts—Practical Impact for Practitioners and Our Clients