Everson Welcomes New IRS Operating Budget

by Glen Shapiro, LawAndTax-News.com, New York

10 February 2006

Speaking this week, Internal Revenue Service Commissioner, Mark Everson welcomed the 1.4% increase in the tax authority's operating budget over last year's figures.

In a statement, Mr Everson observed that:

"The Administration’s 2007 budget proposal shows a strong commitment to the work we’re doing at the IRS. The overall $10.7 billion operating budget is a responsible request in light of the current budget environment."

"The proposed budget strikes a good balance between maintaining our commitment to taxpayer service and continuing to reinvigorate enforcement efforts. The proposal continues support for our priority technology modernization projects."

"An important part of the request involves the new legislative proposals to address the tax gap. We know from our research that compliance is greatest where there is third-party reporting. The Administration’s proposal would give us new tools to improve tax compliance."

Measures proposed in the fiscal 2007 budget designed to help close the $300 billion annual 'tax gap' will: clarify the circumstances in which employee leasing companies and their clients can be held jointly liable for Federal employment taxes; require debit and credit card issuers to report to the IRS gross reimbursements paid to certain businesses; require increased information reporting for certain non-wage payments made by Federal, State and local governments to procure property and services; amend collections due process procedures applicable to Federal employment taxes; and expand return preparer identification and penalty provisions.

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