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New Treasury Nominee Advocates Beefing Up the IRS

The new nominee for Treasury Secretary, Steven Mnunchin, advocates beefing up the IRS not stripping it down as most republicans advocate.  Why?  What would possess a Trump nominee to advocate on behalf of the IRS?  Money.  Pure and simple.  The programs and undertakings of the US Government will require greater funding, and Steven Mnunchin believes the IRS is the one of the best agencies to go get it.

Secretary nominee Mnunchin proposes advancing IRS computer systems and increasing the IRS staff to allow the agency to more aggressively pursue income and tax collection matters.

“I would use my expertise to bring the IRS up to date,” Mnuchin, a former Goldman Sachs Group Inc. executive and West Coast Movie financier, said during his confirmation hearing before the Senate Finance Committee today.

In his remarks, the proposed Treasury Secretary addressed reduction in IRS staff of more than 30 percent over the past several years.  He also railed on the IRS’ computer systems and how the IRS lacks internal technology experts to update its systems.

“Cybersecurity is such a big issue, and the IRS needs to protect American taxpayers’ information,” Mnunchin declared.

He noted the IRS is a primary source of revenue for the US Government, and IRS audits will need to be increased in order to meet the funding required by new administration goals and proposed programs.  IRS budget levels for 2016 were almost $1 Billion less than five years earlier, and Secretary nominee Mnunchin advocated that the republican majority should be providing the tools and personnel necessary to aggressively collect US taxes around the world.  Initiatives such as FBAR compliance including the OVDP and the Streamlined Application as well as increased security to protect the information of US taxpayers where high on his agenda.

Beefing up the IRS does make sense from a revenue perspective, although most US taxpayers enjoy the thought of dismantling more IRS power.  Unfortunately, it appears the need to generate money for the Government will result in additional pressure on US taxpayers as a result of a reinvigorated IRS.

If you have been contacted by the IRS for any US or international tax audit or IRS collection issue we invite you to call for a free consultation at 866-631-3470.