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Additional Information on the Program Integrity Initiative for the Internal Revenue Service in the President's Budgetary Proposals for Fiscal Year 2012 - Extrapolation of Full-Year Appropriations for 2011 [i] (June 23, 2011)

handle is hein.congrec/cbo10562 and id is 1 raw text is: June 23, 2011 Additional Information on the Program Integrity Initiative for the Internal Revenue Service in the President's Budgetary Proposals for Fiscal Year 2012 The Congressional Budget Office, along with staff of the Joint Committee on Taxation (JCT), has analyzed the budgetary impacts of the proposal in the President's budget for fiscal year 2012 to increase Internal Revenue Service (IRS) appropriations by $13 billion over the next decade to fund initiatives to enhance tax compliance. The Administration estimated that the proposal would increase revenues by $56 billion over the 2012-2021 period. Using information from the President's budget and additional information provided by the IRS, CBO and JCT estimate that the proposed increase in IRS appropriations would increase revenues above CBO's baseline projection by about $42 billion over the 2012-2021 period. For Congressional scorekeeping purposes, those additional revenues would not be counted as an offset to such spending pursuant to Congressional scorekeeping guidelines. The following sections provide details about the proposal, the estimated effects on revenues, and the Congressional scorekeeping rules regarding the estimated increases in revenues. Proposal. The President's budget includes a proposal to provide additional spending for enforcement and compliance activities of the IRS. The proposal encompasses a five-year ramp- up in enforcement spending, relative to baseline amounts, beginning with an additional roughly $240 million in fiscal year 2012 for enforcement and compliance initiatives, including actions targeted at improving tax compliance among individuals and businesses with international transactions, expansions of collection activities, implementation of new information-reporting requirements, and improvements in the delivery of tax credits. The President proposes to continue the 2012 initiatives over the 10-year budget window, along with additional, unspecified initiatives instituted over the next four years that would also continue throughout the budget period. The net effect would be a ramping up of spending on enforcement and compliance through 2016-reaching an added $1.7 billion in that year, and then a continuation of that spending level in subsequent years. In its Analysis of the President's Budgetary Proposals for Fiscal Year 2012 (April 2011), CBO provided estimates of the impact on federal spending from the President's other program integrity adjustments, which called for increased appropriations for the administration of benefits for Social Security's Disability Insurance program, Medicare, Medicaid, Supplemental Security Income, and unemployment insurance.I At that time, CBO had not completed an estimate of the impact of the proposed IRS program integrity funding. I In total, CBO estimated that those program integrity savings would total about $22 billion over the 2012-2021 period if increased administrative funding was provided, as requested in the President's budget for fiscal year 2012, for continuing disability reviews related to Disability Insurance and Supplemental Security Income programs, for program integrity activities of the Department of Health and Human Services (for both the Medicare and Medicaid programs), and for continued eligibility reviews of unemployment compensation beneficiaries. Those savings would accrue if increased funding was provided for all years from 2012 through 2021, as called for in the President's budget. (As is the case with the IRS funding proposal, the estimated savings for those programs cannot be counted for Congressional scorekeeping purposes under the scorekeeping guidelines established by the Congress. See the subsequent discussion on Congressional Scorekeeping.)

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