CONGRESS TO INCREASE IRS FUNDING

Congress to increase irs funding. Due to the fact that the IRS has been underfunded for several years in a row, both Congressional Republicans and Democrats have actually agreed that this in the one federal agency that needs lots of additional funding. Could it be the exploding deficit, and the fact that for every dollar funded to the IRS, the agency brings in nearly $12 of revenue ? Or could it be that more Americans have fallen behind on taxes and the leader of both parties don’t want the voluntary compliance system to go to tatters ? Take your pick. It doesn’t really matter, because the fact is, the IRS has been underfunded and that is going to change in the near future. Added to the increased work from identity theft, tax code changes (The Tax Cuts and Jobs Act) and changing over the most antiquated computer system in the entire Federal Government, the IRS was asked to also administer the COVID-19 tax relief checks, as income levels applied to who received the checks. In addition, the public has been complaining to Congress about service issues at the agency for years now. Congress to increase irs funding.

The Electronic Tax Administration Advisory Committee gave its 2020 report to Congress. In its finding, Identity Theft Tax Refund Fraud and improving cybersecurity and enabling electronic tax administration while protecting taxpayer information was critical. Tax Refund Fraud threatens the integrity of our voluntary compliance tax system at both the federal and state levels. The wholesale theft of huge volumes of personal information has provided criminals and other bad actors with detailed and accurate taxpayer information. TO protect our tax system, the Security Summit must continue to drive a unified and collaborative approach among all of the stakeholders. Fortunately, the IRS, states and private industry have made substantial funding and personal commitments to the Security Summit. Ongoing funding and investment in programs, technology and staff will be critical to the continued maturation of the Security Summit. The response to the COVID pandemic shows the resilience of our tax system.