President Biden and his administration recently requested a $1.2 billion increase in funding for the IRS for Fiscal Year 2022. The additional $1.2 billion would increase the IRS’s budget by roughly 10% to a total of $13.2 billion. It is believed that the additional funding will be used to increase IRS enforcement, especially for high-income individuals who are believed to be non-compliant and/or more likely to circumvent their tax obligations.
The $1.2 billion increase also marks a change in a long-time decline in IRS funding and workforce.
What does that mean for you?
If the IRS’s budget is increased, as proposed, increased enforcement is almost a certainty. It is expected that this will increase both audits and collection efforts. Exactly who may be audited is unclear, but taxpayers should consider preparing themselves now. Documents should be prepared and organized and have them audit-ready if necessary.
If you have an issue and are being audit, or consider yourself at-risk, McLaughlin Legal, APC may be able to help. McLaughlin Legal was formed in 2009 as a boutique San Diego tax law firm. We provide responsive solutions for all types of civil and criminal tax disputes, estate planning, estate administration, and more. Today McLaughlin Legal helps individuals and businesses with tax audits, appeals, criminal tax investigations, drafting wills, trusts, powers of attorney, and more. Since its beginning, the firm has focused only on tax law, with an emphasis on two complementary practice areas: (1) civil and criminal tax litigation, and (2) tax and estate planning. Within these two concentrated practice areas, McLaughlin Legal is dedicated to three core principals: taking your business personally; providing extremely specialized services; committed to your well-being. We encourage you to learn more by contacting us today.