Web Exclusive: Spending cuts could mean less tax audits - KYTX CBS 19 Tyler Longview News Weather Sports

Web Exclusive: Spending cuts could mean less tax audits

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(CBS) - There may be a bright side to this year's spending cuts in Washington. Experts say you'll have a smaller chance of being audited.  The cuts will force thousands of employees at the IRS to be furloughed without pay for up to seven days.  That means there will be fewer auditors.  People are opening up their wallets and are also seeing bigger paychecks.

The U.S. Commerce Department reported consumer spending increased 2-tenths of percent in March.  Income also grew by the same amount.  Analysts say it's a sign that the payroll tax increase has yet to put a chill on spending.

For the first time in six years, the U.S. government is paying down its debt.  The treasury says it now expects to pay off $35 billion dollars of debt this quarter.  Economists say the increase in the payroll tax at the beginning of the year and steady economic growth has put more money into the government's offers.

And more Americans are buying homes. The National Association of Realtors reports pending sales jumped 1 and a half percent.  The last time it was that high -- April 2010 when the government's home buyer's tax credit boosted sales.

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