IRS Would Add 5,000 Employees Under Obama’s Budget Proposal

President Barack Obama proposed increasing the budget for the Internal Revenue Service by 9.4 percent to hire more than 5,000 new employees, most of whom would pursue tax cheats.

The president’s fiscal 2012 budget released today sets funding for the tax-collection agency at $13.3 billion, an increase of $1.1 billion from 2010, the last time a full appropriation was made for the IRS.

Almost half of the increase, or $460 million, would support the agency’s tax-enforcement programs. Under the plan, the IRS would focus on fighting tax evasion through the use of offshore accounts and cheating by corporate and high-wealth taxpayers. It also would seek out fraudulent tax preparers.

These enforcement efforts would yield $1.3 billion in additional revenue in two years, according to the budget plan. Obama’s budget also proposes other compliance initiatives it estimates would generate $56 billion over the next decade.

To contact the reporter on this story: Ryan J. Donmoyer in Washington at rdonmoyer@bloomberg.net

To contact the editor responsible for this story: Mark Silva in Washington at Msilva34@bloomberg.net

Enlarge image

IRS Would Add 5,000 Employees Under 2012 Budget

Dennis Brack/Bloomberg

Under the plan, the IRS would focus on fighting tax evasion and seek out fraudulent tax preparers.

Under the plan, the IRS would focus on fighting tax evasion and seek out fraudulent tax preparers. Photographer: Dennis Brack/Bloomberg