US Treasury Seeks To Throw More Money Into IRS Enforcement Budget

by Mike Godfrey, Tax-News.com, Washington

25 April 2005

The United States Treasury has requested funding of more than $11 billion for the fiscal year 2006, the majority of which will be allocated to the Internal Revenue Service, which includes yet more money to fund the agency's enforcement activities.

Testifying before the House Appropriations Subcommittee on the Departments of Transportation, Treasury, Housing and Urban Development, the Judiciary, District of Columbia, and Independent Agencies, the Treasury Secretary John Snow explained:

"Treasury's strategic goal to manage the US Government's finances effectively is the largest part of the President's fiscal year 2006 request for the Department. The budget request of $11 billion - the majority of which is for the Internal Revenue Service - underscores our commitment to provide quality service to taxpayers and enforce America's tax laws in a balanced manner.

"The request includes a 7.8 percent increase in enforcement funding over fiscal year 2005. The increase will provide additional resources to examine more tax returns, collect past due taxes and investigate cases of tax evasion."

According to Snow, the request will bring the total enforcement level in the IRS to $6.9 billion.

He continued:

"The proposed fiscal year 2006 budget makes a strong commitment to a sound system of tax administration. The IRS collects $2 trillion annually; however, billions continue to go uncollected every year. The increase in enforcement funding will be used to bolster audit coverage of corporations and high-income individuals who try to evade taxes as well as to expand collection and criminal investigation efforts."

"These investments will pay for themselves several times over," argued Snow.

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