IRS Budget Spared Cuts as Agency Seeks Revenue From Tax Cheats

IRS Budget Spared Cuts as Agency Seeks Revenue From Tax Cheats - Businessweek

Of course just like the military the IMF cant touch the budget of its private collection agency for its private bank.

April 12 (Bloomberg) -- The Internal Revenue Service avoided a $600 million budget cut proposed by House Republicans, preventing changes that could have cost the government $4 billion in uncollected revenue.

Under the proposed spending bill released today, the IRS budget for fiscal year 2011 would be $12.1 billion, or 0.2 percent less than in fiscal 2010. That level would subject the IRS to the same across-the-board funding cut as all domestic, non-defense agencies.

The legislation would deny the IRS a $486 million budget increase it had sought as it tries to improve enforcement of tax laws aimed at wealthy individuals and multinational corporations. House Republicans touted the denial of the IRS increase when they announced the budget agreement with the administration April 8.

The IRS didn’t respond to a request for comment today. Commissioner Douglas Shulman said last month that IRS budget cuts would be counterproductive, because they would reduce revenue from tax collections. He estimated that the loss would be $4 billion.

Senator Carl Levin, a Michigan Democrat who has called for the IRS to be more aggressive in pursuing offshore tax evasion, said Congress should give the agency more resources.

‘Going to Hurt’