A new presidency oftentimes is the catalyst for new tax policies and President Biden's administration is no different! On May 28, 2021, the Biden administration released its fiscal year budget for 2022 along with the Biden tax policy. The budget, which amounts to $6 trillion, places a huge priority on enhancing Internal Revenue Service (IRS) compliance and enforcement. In fact, IRS funding is expected to increase by $80 billion.
Roughly $554 billion in taxes were uncollected in 2019, according to IRS Commissioner Chuck Rettig. Additionally, 80% of that discrepancy is due to underreported income and excessive deductions. Other reasons for these tax discrepancies are due to people not filing returns at all, incorrectly filing returns, and failing to pay the taxes owed.
How will the Biden tax policy affect you, as a taxpayer?
Biden's new fiscal year budget will allocate funds towards doubling the IRS works force and hiring as many as 87,000 new employees over the next decade! With more employees working on catching up with unpaid tax debt and enforcement action, delinquent taxpayers who might have slipped under the IRS' radar before may be subject to enforcement, fees, and penalties.
The Biden tax policy, although primarily targeted at the wealthiest Americans, may lead to increased audits for small businesses. Business owners who make over $400,000 a year are more than likely to face audits or other enforcement actions.
Take action before the Biden tax policy affects you!
Now, more than ever is the right time to clear up any outstanding tax debts, get current with your tax filings, and resolve your back tax debt. The new tax policies under Biden's administration has placed a heavy focus on IRS enforcement actions. In order to avoid IRS collection and enforcement actions, it is imperative that you take the first step to resolving your back taxes. Get in compliance with the IRS today.
Got tax questions? We've got tax answers.
Do you need help resolving tax debt? Our team of experienced tax professionals is on standby! LifeBack Tax is a tax resolution firm based in Chatsworth, CA. We specialize in determining structured solutions for clients who owe back taxes to the state or IRS. LifeBack strives to determine the best possible solution for you so that you are in compliance with the IRS. We will fight for you to get your life back.
Rajneet Kaur, EA, MBA, Certified Tax Resolution Specialist is an active Enrolled Agent of the Internal Revenue Service. With over 16 years of experience in the industry, Rajneet and her team have been able to resolve state and IRS debts for countless clients across the nation! To get in contact with Rajneet and the LifeBack team, call (855) 605-1500 or send an e-mail to [email protected]