Budget Cuts Have Affected The Performance Of The I.R.S., Report Claims
Due to budget cuts and an ever increasing workload, the IRS is unable to carry out its primary duty of tax collection effectively. This is according to a report in Wednesday’s issue of the Internal Monitor, a publication of the IRS.
Budget cuts have led to staff reductions causing a huge backlog of work. Hundreds of billions of dollars in taxes are not being collected every year because of these changes. This is what the taxpayer advocate, Nina Olson claims in her report to Congress.
In order to discharge its mandate more effectively, the IRS has come up with a number of automated software to enable taxpayers file their returns without having to deal with costly audits.
A study showed that even when taxpayers file their returns correctly using the software, their refunds took too long to process.
Ms. Nelson claims that the due to budget cuts, the agency has resorted to using short cuts that undermine the rights of taxpayers. She now wants the agency’s budget to be increased and the tax code streamlined to make it easy for the average taxpayer to understand.
On the other hand, senior officials at the agency claim that while budget cuts might have reduced service quality, the tax collection system remained fair and balanced.
A senior official at the agency refuted claims that there is a link between erosion of taxpayer rights and the challenging budget environment as baseless and inaccurate.
The report came at a time when the mandate of the IRS has been extended to oversee the health care scheme proposed by the President and Congressional Democrats.
- Do Not Fall For Trecherous Tax Scams (2012taxes.org)
- The IRS is Making Immense High-Tech Strides (2010taxes.org)