Industry NewsNews Brief

Sequester won’t delay tax returns, but level of other IRS services may decline

Real Estate Tax Talk

As you doubtless know if you've been paying attention to the news, a budget sequester went into effect on March 1. This is due to the failure of Congress and President Obama to reach the budget-cutting goals they set back in 2011 when the debt ceiling was raised. The deal to raise the debt ceiling required Democrats and Republicans to identify $1.2 trillion in spending cuts to be made over the next decade. If they failed to reach an agreement on how to make the cuts, automatic spending reductions of $1.2 trillion would kick in over the next 10 years. The sequester was designed to be as disruptive and unfair as possible to give both sides a strong incentive to reach an agreement. Automatic spending reductions are to be instituted across the board, allocated 50 percent to defense and 50 percent to nondefense programs. Unfortunately, the strategy didn't work. To paraphrase Lincoln, neither side wanted the sequester, but the sequester came. So, unless Congress acts, some painfu...

Comments