The budget deal allowing the Treasury to not default on its obligations came with strings attached. One of those strings was a substantial cut to the IRS Budget.
The Inflation Reduction Act gave the Service an additional $80B. This newest deal cut that in the following ways.
1 – A $1.4B reduction in funding for 2023
2 – An additional $10B haircut for fiscal years 2024 and 2025
The question now becomes what effect will these budget changes actually have on the day-to-day operations of the IRS?
Through the “Grapevine”, I’ve been told that all IRS hiring stopped immediately. Given the budget considerations, it made no sense for them to continue spending time and resources hiring new recruits that might need to be let go in a few months anyway.
What will happen next is anyone’s guess. But let’s remember that the majority of this new money was supposed to increase audits on upper-income taxpayers and wealthy corporations.
It’s probably safe to say that the upper echelon managers at the Service are waiting to see what will happen with the actual budget process for 2024. Please remember that with the horse-trading common to the budget process, some or all of that money could be reappropriated.
But if it isn’t, the end of this insanity could be in sight. I certainly hope that it is. Taking a 23 year-old trainee through the audit of a $1M return where I constantly have to refer to a master tax guide explaining tax law isn’t a good time on a Saturday night.
Let me leave you with this.
The Supreme Court struck down the new administration’s plan on student loan debt forgiveness this morning. For those of you still repaying your college debts, there’s a few things that need to be accomplished.
After an almost three year moratorium on loan payments, many things may have changed. I’d suggest that you spend some time getting organized before your payments become due.
1 – Your loan servicer may have changed in the interim, so you’ll need to find where your loans actually are. Go to www.Studentaid.gov and find your loans. Make sure that the servicer has your current contact information in case they need to contact you.
2 – If your financial situation has changed for the worse in the last three years, you can apply for an income driven repayment plan. At the same web address click on the tab marked “loan repayment”, fill out the form, and see if anything can be done to provide a more affordable option. This process can take up to 60 days, so if this is applicable, get on it ASAP.
It looks like we’re going to have a rainy weekend with beautiful weather on the fourth. Take some time for yourself. Read a book. Catch up on your chores. Mark off a couple of items on your Honey-Do List.
Spend some time with your children. Take your kids to the park. Buy them an ice cream. Let them know that they are your reason for being and that they’re truly loved.
Take your partner out for a romantic dinner. Talk to them. Don’t forget to listen. Make them feel just as special as they are. Let them know that they’re truly loved and respected.
If there’s one thing that all Chicagoans know, it’s that summer is fleeting. Take advantage while you can.
And be smart enough to stay away from Downtown. Something tells me that there’s going to be a bunch of Good Ole Boys in funny looking cars driving way too fast on the Outer Drive.
We’re all going to get through this. Let’s get through it together.
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