Increase the IRS budget; No, don’t!

June 17, 2011

The agency in charge of collecting the money needed to run the U.S. government and its programs has taken an early hit in the Congressional appropriations process.

The House Appropriations Committee’s subcommittee on financial services and general government has signed off, by voice vote, on a $19.9 billion bill to pay for financial services and general government costs through Sept. 30, 2012.

Irs_logo_208 Specifically, the House panel’s budget calls for the IRS to get more than half of the total spending allocation. But the proposed $11.5 billion for the tax enforcement and collection crew is $606 million less than the IRS received in fiscal 2011. And it’s $1.8 billion less than requested in the president’s budget proposal.

That’s not the Follow-up Friday (or any day) news that IRS Commissioner Doug Shulman, who previously testified before Congress that budget cuts to his agency would increase the deficit, wanted to get.

Rep. Jose Serrano of New York, the subcommittee’s top-ranking Democrat, said the cuts would force the IRS to furlough up to 4,100 employees.

“This is exactly the sort of short-term cut that will do much greater harm than good in the long term,” Serrano said.

Some outside support: For what it’s worth, which practically and fiscally speaking isn’t a lot, the IRS did get some love this last week.

The IRS Electronic Tax Administration Advisory Committee (ETAAC), in its annual report to Congress, recommended that lawmakers fully fund the agency’s modernized electronic filing effort.

The IRS is at a strategic inflection point, notes ETAAC, which is being driven by factors such as:

  • Budget pressures, and likely reductions, for IRS;
  • Loss of key talent as experienced IRS employees and managers retire and, in some cases, are not replaced;
  • Rapid technological changes as new computing and communications devices, such as smart phones and tablets, are launched; and,
  • Rapidly increasing taxpayer expectations for better, faster service, driven in large part by technological changes and consumer experiences outside of the tax environment.

While the ETAAC report isn’t likely to convince Congress to shell out more dollars in these budget-cutting times, the IRS can take some solace in knowing that someone feels its pain.

Related posts:

Want to tell your friends about this blog post? Check out the buttons — Tweet This, Reblog, Like, Digg This and more — at the bottom of this post. Or you can use the Share This icon to spread the word via e-mail and online avenues. Thanks!

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
6 tax moves to consider this June

June 3, 2026

Definitely take a break this June. But taxes don’t take vacations. So, you also should…

Read More
Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments