Proposed IRS Budget Cuts Could Jeopardize US Tax System - McDermott Will & Emery

Proposed IRS Budget Cuts Could Jeopardize US Tax System

Overview


Jean Pawlow criticized proposed cuts to the IRS budget, saying that “it seems inconsistent to acknowledge that the government needs revenue yet take away some of the funding that is responsible for enforcing the tax laws and collecting that revenue.” Citing the declining number of audits and shrinking staff at the IRS even as case backlogs grow, Ms. Pawlow noted that “for taxpayers who have financial statement obligations and for whom taxes can be one of the single-biggest expense items, having an outstanding controversy is stressful and difficult. People are really starting to question now whether the belt is too tight” on IRS funding.