New Report Reveals IRS Cut Its Own Budget

New Report Reveals IRS Cut Its Own Budget

With the April 15th tax deadline now passed, a new report from Congress spotlights that the IRS may have self-imposed budget cuts to customer service.

In the run-up to tax filing deadline, IRS Commissioner John Koskinen blamed Republican-led cuts to the agency’s budget as the culprit for the dramatic drop in response to taxpayer calls.

However, the report points to specific transfers of money within the IRS. An estimated $134 million was reallocated from customer service to other areas of the agency. The agency also reduced its allocation of taxpayer fees to customer service activities by 76%, an estimated $49 million.

Customer service was under-funded by nearly $200 million, when compared to last years funding numbers. This directly resulted in fewer than 35% of taxpayer calls being answered.

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Conservative Intel Facebook:
Did you have trouble contacting the IRS?
Turns out they cut their own budget! http://j.mp/CIB-IRSchops

Commissioner Koskinen is scheduled to testify before the House Ways and Means Committee. Questions regarding the self-imposed budget cuts will, most certainly, come into play as the contentious exchange takes place.

What’s more, the agency is still plagued with ‘improper’ tax payments – for the Earned Income and child tax credits – to the tune of nearly $25 billion. This figure pales in comparison to the agency’s total budget of $11 billion.

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7 COMMENTS

  1. Now is those customer service CUTS so they can still issue BONUSES to their employees? ? ?

    Without their very lucrative BONUSES they should be able to have a GOOD customer service system, even though I do NOT know if they could answer a LOT of the questions because of the COMLEXITY of the TAX CODE. I understand that a LOT of the operators do NOT know what to do if somebody really has a hard question ASKED.

    • They are there but is some cases old agents were switched and their duties changed to OC, hence, no one to answer the phones for customer questions.

  2. This is what happens when you put a liberal in charge of anything. They mess it up royally, however, not before they stick their fingers in the cookie jar. They help themselves first, and then they cry foul. What is even sadder is the fact that they think they have great answers to the questions they are asked by committee members, when in fact, they sound like total idiots.

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