Increase Funding to the IRS for FY2014 Added reason
After showing success over 10 years in forcing non-filers to either file or accept an IRS generated return (from W-2s, 1099s, and other information), these so called automated substitutes for return (ASFR) have decreased by 54% in 2012. Why? According to the AICPA’s Tax Matters editor Paul Bonner in the Journal of Accountancy (June 2013 page 80), IRS’s explanation was manpower issues and a practice change. The practice change of not generating a ASFR if the taxpayer already has a balance due on another tax return should be reversed. Get real! If a taxpayer owes monies, record such and follow up. The manpower issue is long standing and needs to be addressed. This ASFR program partially addresses the $28 billion non-filing tax gap issue discussed in my July 15, 2013 blog. This ASFR program has been successful but unfortunately so successful that staffing needs to be beefed up to do the follow up on these cases. This should be one of the issues addressed with the $3 billion of added IRS funding in FY2014.
Harry Pukay-Martin
