Obama has called for a 9% increase in the IRS budget. House Republicans prefer a 24% reduction.
In 2012, enforcement actions of the IRS produced $50 billion. This was down 9% from 2011. That is out of a tax system that collected $2.4 trillion in revenues. By any standard, IRS collections are a failure.
There is even more good news. Since 2010, the IRS got rid of 8,000 full-time positions. That was a 14% reduction.
This has terrified advocates of a bigger, more aggressive IRS. This includes CPAs, whose bread and butter is the fear of the IRS. “Our concern is where the next step is arbitrarily cutting the budget,” said Edward Karl, vice president for taxation at the American Institute of Certified Public Accountants in Washington. “Oversight is appropriate. Effective administration is appropriate. But so is full funding.”
How many individual tax returns got audited in 2012? One in 97.
Also good news. The IRS will be in charge of ObamaCare. The ObamaCare program is scheduled to start enrolling people on October 1, when the new fiscal year begins. The computer system is in total chaos. This will be the IRS’s baby. It will get blamed. It will have to allocate internal resources to running the system, which will involve explaining why it isn’t working.