For all the budgetary horror stories surrounding the possible “sequestration” of federal defense and discretionary spending on March 1, there could be a hint of good news for tax cheats.
The Internal Revenue Service stands to lose $10 million from a fund it uses to pay informants, as part of the automatic chopping of $85 billion from the final seven months of the government’s fiscal year threatened next week.
Then again, the IRS whistle-blower program created by Congress in 2006 to boost federal tax revenue with rewards for tipsters dropping a dime on tax-evaders hasn’t been famous for its efficiency.
As Bloomberg News reported last year, “it’s become the place where allegations of tax avoidance go to die.” Bloomberg reported in June that the IRS had received 1,300 claims against more than 10,000 companies since 2006, and issued three awards.
So it’s possible that $10 million less inefficiency won’t be missed.
Jeff Kearns contributed.