Over the last few weeks, I have touched on both the politics
of our new presidential administration and IRS audits. And I suppose it won’t
surprise anyone to know there is a spot of convergence between those two
worlds. After all, the future of the IRS does not appear
as if it will remain status quo under the new administration, but it also
appears impossible to determine where its future lies.
A recent
New York Times article discussed the different outlooks on the agency
presented by President Donald Trump and Treasury Secretary Steven Mnuchin.
Trump, who the article slyly points out has had issues with the IRS in the
past, has advocated plans that could drastically cut agency funding. Mnuchin,
on the other hand, believes that the IRS needs an increased budget to regain
some of the power it held in the past.
With ever decreasing funding, the IRS has been carrying out
fewer audits, which inevitably leads to less collection of taxes owed. In a way
then, it seems counterintuitive to make the IRS suffer more cuts, for it seems
there should be a sweet spot where the increased funding pays for itself?
That seems to be the tact Mnuchin would prefer, but whether
him getting his way seems unlikely. Just where the final allocation of funds
lands, however, is impossible to determine. So just remember the recent things
I have written about audits, and how one does not need to fear one if turning
in a valid tax return. Then at least if an audit does happen to you, there can
be confidence that it will not result in drastic negative findings for you –
even if the wait times in dealing with the agency’s customer service is
maddening, for again, less funding means less manpower.
This story further illustrates how we cannot be sure about
how tax law will change over the next year. Indicators say that many taxpayers
can expect a decreased tax burden, but it promises to be months before we have
any sort of final answers in this area.
(And with a likely protracted battle over The Affordable
Care Act, those issues could linger right up to next tax season.)
One thing that can help in times of uncertainty, though, is
taking control of the things over which you have power. One of those can still
be your 2016 tax return. There is already only about six weeks left in the tax
season, so if you’ve been procrastinating filing your return (or even starting
to get your paperwork together), then do it now while you still have enough time.
The more time you have to get everything in order, the more chances we have to
turn things more in your favor.
From this end, let me also give a warning that this is the
time of year when our calendar can fill up fast, so the sooner you set up an
appointment with us to handle your taxes, the better chance you have of being
able to do so at a convenient time for you.
Finally, I want to let this also serve as a time for us to
remain committed to bringing you valuable service that you can count on. In these
time of uncertainty, we want to be one of the things you know you can count on.
Let our service prove it to you this tax season, and for those beyond.
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