There is good and bad news on the IRS front. Congress slashed the IRS budget by $838 million dollars for 2016. The IRS has not seen this low of a budget since 2004. Between the budget cuts and the recently added responsibility to monitor the Affordable Care Act, it is causing a lot of problems for the IRS.
So what is the good news for tax payers? The good news is that this cut will reduce the IRS’ ability to audit and collect delinquent taxes. There will be fewer auditors and collections officers available. Less random audits (pull your name out of a hat type audits) and there will be more paper audits which generally just ask for proof of a specific item.
The bad news is that because there are fewer employees available, it will be more difficult to get through to the IRS for questions and information. Between 2010 and 2015 there was a 25% drop in answered phone calls. This will only get worse. When and if you do get through, they officer will be less likely to provide any information that you could have found on the IRS website. Also, correspondences with the IRS and Amended returns will also take longer to process.
Fortunately, Soulence Tax and Accounting is on your side. We often have the answers to your questions and can usually decipher a letter from the IRS. We are also experienced in navigating around the IRS website. Before you get too frustrated with the IRS, feel free to contact us.