Obama has pledged to increase funding for the IRS by 5% to $12 billion so that more IRS staff can be deployed to make sure taxpayers and companies pay back taxes and get into compliance. This increase in funding must be approved by congress (as part of the fiscal 2010 budget) but if given the thumbs up, it would be put into effect in October 2009 (the start of fiscal year 2010). The focus again on this budget increase is to reduce the number of companies and taxpayers out of compliance both nationally and internationally. The administration stated that under-reporting, and underpayments from taxpayers and companies resulted in over $300 billion in lost revenue from the year 2001. This news is the latest to come out of Washington after Obama has promised to eliminate tax loopholes for companies seeking to avoid taxes on profits earned overseas.
As for companies and individual taxpayers, this means that getting into compliance with the IRS in your best interests as the chance of “slipping” under the radar becomes even less likely with these proposed changes.
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