February 23, 2012 by Meghan Cole
Foxnews.com recently released an article detailing the Obama administrationâ€™s request to Congress for a nearly $1 billion budget increase for the IRS, a move that would allow the agency to hire thousands more employees.
The administration is arguing that hiring additional IRS agents will more than pay for itself. The IRS wants to dedicate another $400 million to enforcement efforts, claiming that alone would raise $1.5 billion in additional revenue — once all the agents are trained up in a few years.
The request is an attempt to restore money to the IRS budget that was cut in 2011. The $12.8 billion budget request would mark an 8 percent increase over the 2012 budget, but a 5.3 percent increase over the prior year’s budget.
Republicans moved to pare down the IRS budget last year. The cuts were part of a broader effort to rein in federal government, but the IRS was targeted in part because of its role in carrying out the federal health care overhaul. The IRS, among other health care tasks, is supposed to make sure Americans follow the requirement — which is under court challenge — to buy health insurance.
But the IRS argues that more money means more agents, and that means more revenue.
The National Treasury Employees Union estimated the increase would allow for 4,000 more employees to be hired.
“The additional funding is critical to repair the damage of the harmful cuts during the past two years,” NTEU President Colleen M. Kelley said in a statement. “The IRS collects some 93 percent of all government revenues — it only makes sense to view IRS funding as an investment towards economic recovery.”
According to the IRS, the agency collected $2.415 trillion in taxes in fiscal 2011.
In addition, the IRS has reported that small business owners as a whole regularly overpay their taxes by as much as 84%.Â If you own a small business, itâ€™s imperative that you take maximum advantage of the tax benefits allotted to you by law.
Find out the deductions you may be missing and start saving thousands of dollars right away with a free tax consultation for business owners.
Whether youâ€™ve held a corporate entity for decades or just incorporated your business this year, you should make sure that youâ€™re aware of all of the tax rewards out there for small business owners.
Although you may think that youâ€™ve got your taxes down to a science, itâ€™s likely that youâ€™re still letting a few deductions slip past youâ€¦which means youâ€™re losing money that could be and should be in your pocket, and not the hands of the IRS!
To read the full article on the billion dollar IRS budget increase please click here.