Determination letters will be centralized as IRS shrinks, consolidates.Faced with budget cuts and staff decreases, the Internal Revenue Service is making plans to centralize cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. and consolidate functions and offices. One significant outcome of the IRS's efforts is the planned centralization cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. of the issuance of retirement plan determination letters, which tell employers whether employee benefit plans meet the requirements of the tax law. The determination letter process currently is handled by 19 key districts. (Key districts are umbrella districts, usually covering three or more IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. districts.) In the future, determination letters will be handled by the Cincinnati key district. However, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. IRS Commissioner Margaret Richardson, centralization will not begin until determination letters have been issued to retirement plans amended to comply with the Tax Reform Act of 1986. Centralizing cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. this function is expected to save the IRS about $15 million annually. The money saved will be put into audits. The IRS also has plans to consolidate its seven regional offices--each of which covers about three key districts--into five. It currently is studying the feasibility of such a consolidation and is negotiating with employees who would be affected by this and other consolidation plans. |
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