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Congressmen Question IRS Technology Budget

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Washington, D.C. (July 17, 2012)

By Michael Cohn

A pair of influential lawmakers are asking the Internal Revenue Service to provide detailed information on its technology budget.

Rep. Charles Boustany Jr., R-La., who chairs the House Ways and Means Oversight Subcommittee, and Rep. John Lewis, D-Ga., the ranking Democratic member of the subcommittee, sent a letter Monday to IRS Commissioner Doug Shulman asking for a full accounting from the IRS to ensure that American taxpayers are receiving the maximum benefit from the IRS’s work and that the modernized computer systems improve and enhance revenue collection and tax return processing. They noted that the IRS requested $2.5 billion for information technology in its fiscal year 2013 budget.

Charles Boustany

“Over the last decade the IRS has spent nearly $20 billion on information technology,” Boustany said in a statement. “Taxpayers deserve to know if they are getting their money's worth. These funds must be targeted at making it easier for families and businesses to comply and increase the IRS’s ability to detecting fraud and protecting hard-earned taxpayer dollars.”

Among other questions, they asked how the IRS determines which IT systems to pursue every year, whether the IRS re-examines its IT base budget on a yearly basis, and if the IRS analyzes how IT infrastructure spending correlates with improved taxpayer services.

John Lewis

“The IRS’s information technology budget has increased to more than $2 billion annually over the last three years,” said Lewis. “I would like to ensure that the investments being made improve both taxpayer service and tax administration. Our voluntary tax system will be strengthened if we provide taxpayers with more technology to meet their tax obligations and provide the IRS with better computer systems to process tax returns quickly and detect fraud.”

2 Comments

I agree with rwblue above. If Congress was sincere about serving the public, it would move out promptly on resolving tax law for the next several years. Waiting until the last minute (or even later) is grossly unfair to taxpayers who don't know what the rules will be when making decisions, and totally unfair to the tax professional community (IRS, state income tax authorities, tax software providers, and tax consultants) which incur overtime and much extra cost in a crunch to react to what Congress has tardily decided to enact as law! Lee Willard, EA, CPA

Posted by: willardtax | July 19, 2012 4:06 PM

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If congress would stop making last minute changes to the tax law that require the IRS to reprogram a whole year's worth of software in a four week time frame, the annual IT cost should drop considerably. But since congress has no idea how technology actually works and the time and man hours it takes to make changes to software, I think they will continue to blame the IRS IT's problems on the IRS IT employees and contractors.

Posted by: rwblue | July 19, 2012 1:35 PM

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