Acting commissioner outlines IRS plans for sequestration

BY ALISTAIR M. NEVIUS, J.D.

With mandatory government spending cuts looming, Acting IRS Commissioner Steven Miller sent a memo to all IRS employees on Thursday, outlining the agency’s plans in the event sequestration occurs as planned on Friday. He outlined spending cuts the IRS plans to make, including employee furloughs, but emphasized that the furloughs would not affect tax season.

The IRS’s largest expense is employee pay, and the agency plans to furlough employees, starting in the summer, if the mandatory across-the-board spending cuts take effect. Miller anticipates five to seven furlough days per employee through the end of the government’s fiscal year. The furloughs would apply to all IRS employees and would amount to no more than one furlough day per pay period.

Miller listed three other ways in which the IRS will cut spending:

  1. Continue a hiring freeze;
  2. Reduce funding for grants and other expenditures; and
  3. Cut costs for travel, training, facilities, and supplies.

On Thursday, the Senate rejected two bills that would have averted the sequestration, thereby almost assuring that the automatic spending cuts will occur, as required by the Budget Control Act of 2011, P.L. 112-25.

Alistair M. Nevius ( anevius@aicpa.org ) is the JofA’s editor-in-chief, tax.

SPONSORED REPORT

2018 financial reporting survey: Challenges and trends

Learn the top reporting challenges that emerged in a survey of more than 800 finance, accounting, and compliance professionals across the world, and compare them with your organization's obstacles.

PODCAST

How the skill set for today’s CFO is changing

Scott Simmons, a search expert for large-company CFOs, gives advice for the next generation of finance leaders and more, including which universities are regularly producing future CEOs and CFOs.