IRS Plans to Save Taxpayers $40 Million Dollars

The IRS is eliminating a little over 1 million square feet of rented office space by 2014 in 43 different office locations. The reduction of space comes with a monetary break of nearly 40 million dollars for taxpayers, according to the Internal Revenue Service. The reductions are mainly the product of turning larger offices into smaller offices, therefore allowing the space to be rented out elsewhere. Complaints of lofty taxpayer expenses have caused the IRS to make cuts when possible.

Of all the offices that are expected to close, none of the spaces entail interacting directly with taxpayers or offering taxpayer assistance. The Internal Revenue Service expects that the closure of these offices will have minimal effects on taxpayers due to the nature of the work that is done in them. The closure of these offices is expected to save $17.2 million in annual rental costs in 2012 and $23.5 million in 2013. Because these savings are permanent reductions in costs, the savings are expected to be seen beyond 2013 and well into future years.

In 2012, the offices closing equal a total of 715,000 square feet and 230,000 square feet in 2013. In 2011, IRS office space was reduced by a total of 105,000 square feet. The Internal Revenue Service has over 650 offices nationwide. The space-cutting initiative is part of a series of rental-saving projects that have been taking place over the past seven years. These projects have saved $70 million dollars annually to date, according to the IRS.

Although the IRS is taking steps to reduce taxpayer expenses, the professionals at JG Tax Group can help you if you are having tax problems. If you owe the IRS money and would like to resolve your financial issues, contact us today to get the help that you need.