House Panel Proposes $9-Billion Budget for IRS for Fiscal Year 2014

The fiscal year (FY) 2014 budget for the Internal Revenue Service would be cut 24 percent to $9 billion, under legislation set for consideration by the House lawmakers on July 10. The House Appropriations Subcommittee on Financial Services and General Government announced plans to mark up the FY 2014 Treasury/IRS appropriations bill, which sets spending at $4 billion below President Obama’s request for the Service. The legislation also includes funding for the Executive Office of the President, the Judiciary, the District of Columbia, the Small Business Administration, the General Services Administration and the Securities and Exchange Commission.
 
 The bill includes specific restrictions on the IRS due to the Service’s recent inappropriate targeting of specific political groups seeking tax-exempt status, as well as the improper use of taxpayer funds for employee conferences, the committee said. In addition to delaying the implementation of the Patient Protection and Affordable Care Act (P.L. 111-148 ), the legislation includes the following provisions:
 
 (1) A withholding of 10 percent of funds for IRS enforcement activities until all recommendations from the Treasury Inspector General for Tax Administration (TIGTA) to prevent future inappropriate targeting are implemented;
 
 (2) A prohibition on funding for conferences until all recommendations from the TIGTA on conferences have been implemented;
 
 (3) A prohibition on funding for employee bonuses and awards until a review of the effectiveness of bonus and award programs is completed;
 
 (4) A prohibition on funding for the production of videos that have not been reviewed or certified to be appropriate; and
 
 (5) Extensive reporting requirements on the use of funds.
 
 By Stephen K. Cooper, CCH News Staff

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