President Biden has proposed allocating an extra $80 billion to the IRS over the next 10 years in an effort to beef up the agency’s authority. Administration officials believe that an IRS with more power to crack down on tax cheating will raise at least $700 billion within a decade. The administration also plans to increase capital-gains tax and the top marginal income rate, in a concerted effort to recoup tax funds to help pay for the cost of Biden’s American Families Plan.
Earlier this month, the head of the I.R.S., Charles Rettig, told a Senate committee that the agency lacks the resources to catch tax cheats, costing the government as much as $1 trillion a year. The White House hopes to close that gap by giving the IRS more collections power.
In previous articles, we’ve detailed the massive backlog the IRS has accumulated throughout the COVID-19 pandemic. An influx of funding will give the agency a boost to get caught up — in addition to increased collections power. In other words, the IRS could be getting more aggressive in the coming months. If you have outstanding tax issues to resolve, the time to act is now.
Luckily, you don’t have to do so alone. At Boxelder, our team of tax attorneys and enrolled agents boast decades of experience negotiating with the IRS and helping clients resolve their tax debts. Give us a call at 303-317-6111, or click the button below to get ahead of the IRS today.