THE IRS IS GETTING MORE MONEY

The IRS is getting more money.

On Wednesday the House and Senate passed a $1.5 trillion one-year spending bill that ensures the federal government will keep running through October 2022. The bill is heading to the president’s desk, who is expected to sign it. The house acted quickly in passing the measure, but it’s certain that nobody knows what’s in the 2,700 page document because they just didn’t have enough time to study it. What we do know is that it includes $13.6 billion for humanitarian and “security aid” to Ukraine and $743.4 billion in defense spending. It also includes billions more on a long list of domestic spending projects and programs. Don’t forget the IRS. They will get $12.6 billion for fiscal 2022, up by $675 million. The additional funds will be spread across agency functions, but the bulk will be spent on IT upgrades and tax law enforcement. But the Biden administration is not stopping here. They continue to press Congress for an $80 billion funding hike for the IRS over ten years. Regardless, the IRS recently announced plans to increase audit activity on small businesses. Now they have the money to move forward with that plan. It’s never been more important to have my Small Business Tax Guide in your library.