IRSAC: Full funding for IRS a smart ‘first step’

The IRS deserves a raise.

Or, that’s a primary point raised in the 2021 Annual Report from the IRS Advisory Council.

“The nation’s expectations for the IRS and duties imposed by Congress cannot be effectively and efficiently met without a significant investment in IRS staffing and training, and secure, flexible, and modern technology infrastructure,” the report reads. “Fully funding the IRS’s FY 2022 budget request is a first step in the right direction.”

IRS headquarters

Rather than specific recommendations, IRSAC offered “unanimous support for IRS funding as outlined in the IRS FY 2022 budget request.” That request contained base appropriations of $13.2 billion to provide funding for the nation’s taxpayer services, enforcement, operations support and IT modernization programs, and a program integrity allocation adjustment of $417 million to improve enforcement, among other points.

The report includes recommendations on 23 other issues, including:

  • Implementation of Sec. 1302 of the Taxpayer First Act regarding IRS improvements;
  • A reduction in the e-filing threshold for information return filers;
  • Revisions to Circular 230; and,
  • Compliance efforts around abusive promoters and preparers.

IRSAC is a federal advisory committee that provides a public forum for discussion of relevant tax administration issues between IRS officials and representatives of the public. It draws members from the taxpaying public, tax pros, representatives of the low-income community, small and large businesses, tax-exempt and government entities, the payroll industry and academia.

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