IRS Budget Cut Could Lead to Increased Liability for Managers
In September 2022, the Biden Administration proposed funding for the IRS that would allot $80 billion over ten years with the goal of providing enforcement infrastructure that could increase IRS revenues by approximately $200 billion. However, the recently-approved debt limit agreement has lawmakers looking to take some of those funds back to help prevent budget cuts to other programs. Currently, just over $21 billion is slated to be removed from the allocated IRS budget, shortening the runway of ten years to eight.
Some argue that, because IRS auditors bring in more revenue than it costs to employ them, cutting IRS enforcement may cause the federal government to lose money. Others counter that there are other programs and initiatives in greater need of support, and the funding should be allocated to them.
Regardless of the reason, the proposed reduction in funding means IRS managers will continue to face increased workloads, heightened scrutiny, and accountability demands, increasing their exposure to allegations or complaints of wrongdoing. Where there is increased scrutiny, disciplinary action and lawsuits often follow. Regardless of position or years of service, IRS managers can find themselves needing to hire and pay for outside legal counsel to defend and dispute these matters, even if the allegation is ultimately baseless and/or out of their control. Allegations of wrongdoing concerning IRS managers could potentially be related to monetary losses to public programs, which may lead to calls for accountability from individuals, politicians, or public interest groups.
Alleged incidents involving IRS managers can lead to agency investigations. If an allegation is made against you, it is a necessity, not luxury, to have knowledgeable and effective counsel advocating on your behalf. Your agency attorney is not your attorney. It is the job of the agency attorney to defend the agency – not you. As an IRS manager, you need to have counsel that has specific experience representing federal employees with your professional vulnerabilities. As the professional liability insurance (PLI) provider endorsed by the Professional Managers Association (PMA), FEDS Protection can help.
FEDS Protection offers federal employee policies with $1 million, $2 million, or $3 million in civil liability protection for attorney’s fees and indemnity costs in the event you are sued in your civil capacity. The FEDS policy also includes $200,000 of legal representation coverage per incident for administrative actions and $100,000 of coverage for criminal defense costs. Annual premiums for FEDS Protection PLI start at $290, which is less than it would typically cost to hire a federal employment lawyer for an hour. Additionally, federal managers and law enforcement officers are eligible for a reimbursement of up to 50% the cost of their PLI policy through their agency. To learn more about how a FEDS PLI policy can protect you and your career, visit www.fedsprotection.com or call (866) 955-FEDS, M-F 8:30am-6pm to speak directly to a representative.
*This article is provided for informational purposes only and does not constitute legal advice.