Q: As taxpayers gear up for another tax season, how is the IRS complying with its congressional mandate for better taxpayer service and accountability?
A: The IRS arguably is an easy target for politicians and taxpayers. But the federal tax collection agency often has itself to blame. Consider the annual report recently issued by the National Taxpayer Advocate’s Office, which analyzes taxpayer problems and recommends solutions. It spelled out the same persistent problems that have plagued the agency for years, including taxpayer access to IRS phone assistance, the accuracy of assistance once a caller gets through to an IRS representative and confusing taxpayer notices. Plus, a recent audit by the nonpartisan General Accounting Office indicates the IRS failed to meet six out of eight service targets for measuring access to and the accuracy of its phone service. On the other hand, I also appreciate the taxpayer advocate’s suggestions for legislative solutions to simplify the tax code. It seems fewer and fewer taxpayers prepare their own returns anymore, no thanks to the complex nature of federal tax law. As the senior Republican on the Senate Finance Committee, which has jurisdiction over tax policy, I hope to continue bipartisan progress made on efforts to simplify the Earned Income Tax Credit and fix the Alternative Minimum Tax (AMT). In another development, the IRS says it will conduct 50,000 audits this year to measure compliance by U.S. tax filers. I applaud the agency’s goal to curtail and catch tax cheats. However, I’ll be keeping close tabs on the project to protect the rights of law-abiding taxpayers.
Q: Any word yet from the IRS regarding its missing 2,300 computers?
A: As outrageous as it may sound, the IRS came up short on an internal inventory audit conducted last year at my request by the Treasury Inspector General for Tax Administration. Specifically, the agency reports as missing or stolen 2,332 computers, 6 firearms, and more than 500 investigative items such as identification badges, communication devices and electronic surveillance tools. It’s ironic the IRS employs such lax inventory controls when it requires taxpayers to be held accountable for every single receipt. In light of such mismanagement, I have called upon the White House to reject a funding increase this year for the IRS. The inventory issue suggests poor management of money, resources and people. What’s worse, its inability to pinpoint exactly how many of the computers are lost, stolen or damaged reveals yet another potential blunder. It’s not known to what extent, if any, sensitive taxpayer information may be compromised. Until the IRS can show real improvement in its inventory management practices, not empty promises, the agency should not be eligible for a rubber-stamped budget increase. In the meantime, I look forward to a detailed response in late February from the Treasury Department about its plans to fix the chronic weaknesses in the IRS inventory control system.