In May, President Bident proposed the American Families Plan, a sweeping initiative intended to invest in American families and communities. In order to fund the Plan, the Administration intends to introduce and enforce compliance measures to narrow the tax gap—the difference between the amount of taxes owed, and the amount of taxes paid to the government.
As noted in the American Families Plan Tax Compliance Agenda, President Biden intends to “rebuild” the IRS in ways that include:
Assume over time that the IRS doubles its workforce and has the budgetary resources to hire and retain financial, tax, and forensic specialists that can actually carry out its mandate. Imagine that corroborating tax information from financial vendors is analyzed through high-end tech using sophisticated algorithms and artificial intelligence (AI). That is a whole different ballgame that the current bootstrapped and understaffed agency that must carefully pick and prosecute only those errant taxpayers it can afford to pursue.
Before that happens, there is time to address compliance within your business and your individual tax profile. Consider these tips:
Prepare for this potential enforcement change-up by working with a tax lawyer who understands compliance and can detect where you, your family, or business are at risk of an enforcement action. There is no time like the present to prepare for an IRS with the budget to actually do its job.
The reach of the IRS impacts all U.S. persons responsible for paying taxes. If you are facing allegations of tax crime, an employment tax dispute, or other tax controversy, contact our office for a free initial consultation. With offices in Ohio, the law group at Robert J. Fedor, Esq., L.L.C. services clients in Cleveland, Chicago, and across the nation. Call 800-579-0997 or contact us.