Treasury unveils 2005 tax proposals

Treasury unveils 2005 tax proposals

President Bush's fiscal 2005 budget proposal calls for expanding taxpayer use of electronic filing to cut IRS costs, speed processing and promote proper filing.

The president is seeking $10.67 billion for the IRS next year, 4.8 percent more than the agency will receive this year. The proposal, unveiled yesterday by the Treasury Department, also seeks to close tax law loopholes, halt abusive tax payment avoidance and simplify the tax code. The proposal earmarks $300 million for tax law compliance.

Business Systems Modernization would receive $285 million so the tax agency can continue efforts to overhaul its antiquated computers. Recent independent studies have recommended that the IRS resize its modernization to focus on implementing a new taxpayer database and a handful of other projects [see GCN story].

"We want to make it easier for those who pay their taxes and harder for those who choose not to do so," Treasury secretary John Snow said. The IRS estimates that that the enforcement, compliance and simplification proposals would net the Treasury $41 billion over 10 years.

About the Author

Mary Mosquera is a reporter for Federal Computer Week.

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