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NEW YORK (CNN/Money) -
The long arm of the law may get a bit longer, if the Bush administration's budget proposal is passed by Congress. As a result, taxpayers can expect to see a rise in the number of audits.
In his annual budget, President Bush requested an additional $500 million to bolster IRS enforcement efforts.
That represents a nearly eight percent increase over the $6.4 billion spent last year on enforcement. The figure is significant in light of the fact that the administration's budget request has been perceived as relatively austere in other areas.
The IRS says it would use the new money to increase audits of corporations and high-earning individuals, expand collection efforts, and investigate criminal activities.
"Enforcement more than pays for itself," IRS Commissioner Mark W. Everson said in a statement. "Particularly in a period of deficit reduction, funding IRS enforcement is a wise investment."
The overall number of individual audits is relatively small, but there has been a noticeable increase in recent years.
In 2004, the total number of individual taxpayer audits exceeded 1 million for the first time since 1999. The Treasury reaped a record $43.1 billion in enforcement revenue from those efforts, up 15 percent from the previous year. (Click here for more on audit red flags).
Taxpayers, however, can expect to see a decrease in some services, such as walk-in offices, as the federal agency tightens its spending in that area. The IRS defends the move, saying the number of visitors to its walk-in sites has dropped, as more and more taxpayers choose to use the agency's popular Web site.
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