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 VIDEO

How KPMG is innovating the audit

KPMG's global audit team is using cognitive technology and alliances with tech and university partners to drive audit innovation. See how.

SPONSORED REPORT

States look to unclaimed property for revenue

This free report outlines the escheat process, common types of AUP, how different states are handling it and how companies can plan for potential audits and liabilities.