You’ve likely read the news that a major spending bill just passed includes additional funding over the next decade for the Internal Revenue Service. The IRS has been under-funded for decades and the new funding will pay for much needed improvements.
While some worry the new resources will translate to increased audits, Treasury secretary Janet Yellen responded on August 10, saying “Specifically, I direct that any additional resources — including any new personnel or auditors that are hired — shall not be used to increase the share of small business or households below the $400,000 threshold that are audited relative to historical levels.”
What does this mean for the average taxpayer? According to Froehling’s tax partner, Al Delage, “In the short term any changes will probably be fairly slow. It appears the focus will be on improving their internal processes, technology and adding some people. All of these are steps in the right direction to making it easier to work with the IRS.”