Bush Wants To Give IRS Bigger Bite

President Bush will ask Congress to give the Internal Revenue Service an extra $500 million to pursue tax evaders and increase collections, the Treasury Department said Tuesday.

The boost would mean a nearly 8 percent increase in the IRS budget for tax enforcement, according to a proposal to be included in the fiscal 2006 budget the president sends to Congress next week.

The extra money would be used for audits, collections and investigations. The president proposed a substantial increase in the IRS enforcement budget last year.

"Increasing enforcement not only catches tax cheats but discourages others from avoiding paying their taxes," said Treasury Secretary John Snow.

Despite heavy lobbying by the IRS, lawmakers whittled down the request. Massive federal budget deficits have put pressure on lawmakers to limit or freeze federal spending.

The IRS has been working to reverse declines in audits and enforcement that began in the late 1990s by focusing on corporate and wealthy tax evaders.

"Enforcement more than pays for itself," said IRS Commissioner Mark Everson. "Particularly in a period of deficit reduction, funding IRS enforcement is a wise investment."

The independent IRS Oversight Board last year said the agency needed a 10 percent budget increase to meet its enforcement goals.

Government studies have shown that costs not accounted for in its budget, including mandatory pay raises, have hampered the agency's ability to step up tax enforcement.