Trump Proposes Increasing the IRS Budget from 11.2 Billion to 15 Billion
The Trump administration on February 12 released its much anticipated fiscal year (FY) 2019 budget request, entitled “Efficient, Effective, Accountable An American Budget.” The administration’s proposal calls for $15 billion in IRS funding. “By investing in the modernization of Internal Revenue Service (IRS) systems, the Budget would help make the implementation of tax reform successful and support the President’s vision of making tax filing simpler for hardworking Americans,” the proposal reads.
The administration’s budget proposal breaks its IRS funding request into four parts. The administration suggests allocating $11.1 billion in base funding, $2.3 billion for key tax filing and compliance initiatives, and $110 million for IT modernization efforts. Additionally, funding is requested to expand and strengthen tax enforcement. In 2017, the IRS received $11.2 billion in funding.
“These additional investments proposed over the next 10 years are estimated to generate approximately $44 billion in additional revenue at a cost of $15 billion, yielding a net savings of $29 billion over 10 years,” the proposal states. The budget request also outlines several other proposals, which include initiatives to enhance taxpayer compliance and return preparer oversight