Daily Tax Update - April 13, 2010

IRS OVERSIGHT BOARD RELEASES REPORT ON IRS FISCAL YEAR 2011 BUDGET: Today, the IRS Oversight Board released a special report on the IRS FY2011 budget that calls for a funding level of $12.914 billion, an increase of $767.7 million over the previous year’s enacted budget. The Oversight Board’s recommendation is $280.6 million, or 2.2 percent, above that of the President’s request.

  • According to the report, “[I]mprovements in taxpayer service are needed to provide taxpayers with the help they need to make compliance easier. The Board voiced particular concern regarding the level of service (LOS) on IRS toll-free telephones. Increased demand caused service levels to fall to 53 percent in FY2008 and 70 percent in FY2009. The Board’s budget recommendations result in an estimated LOS on toll-free telephones of 80 percent in FY2011 compared to the President’s budget, which results in an estimated LOS of 75 percent.”
  • In the report, the Board says that it believes that immediate benefits will outweigh additional costs. “Improvements in infrastructure are needed to provide a long-term investment in the IRS’ ability to transform itself into a more data-driven enterprise. Such a transformation will make the IRS more effective and efficient, lessen taxpayer burden, and provide the country with a stronger tax administration system better able to serve taxpayers and adapt to change.”
  • The report can be accessed here

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE:
As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

STEPTOE & JOHNSON LLP - TAX PRACTICE
Steptoe & Johnson LLP has one of the largest and most diverse law firm tax practices in the country. The practice covers the entire spectrum of federal taxation, including representation of businesses before the Congress, Treasury and the national office of the IRS; transactional planning for domestic and multinational corporations; complex audit and controversy work for corporations and other business interests contesting IRS adjustments; litigation before the Tax Court, Court of Federal Claims, district courts, courts of appeals and the Supreme Court. The firm's tax practice also encompasses all aspects of employee benefits (ERISA), executive compensation, tax-exempt organizations and charitable giving. Steptoe has an extensive state and local tax practice, representing an array of business clients on complex sales and use tax, corporate income tax and property tax matters, both advising those clients and handling audits, administrative appeals, and litigation for them. Read more information on Steptoe's tax practice.