Budget Cuts Hurt IRS Performance: GAO

Smaller budgets have hurt the Internal Revenue Service’s performance, according to a new government report.

Processing Content

“IRS has absorbed budget cuts since fiscal year 2010, and the resulting imbalance between service and demand has adversely affected operations,” concluded the report from the Governmental Accountability Office, which was delivered to the heads of various congressional committees considering the IRS’s fiscal 2015 budget request.

The full report, which was released on Monday, points out that IRS appropriations for fiscal 2014 are below the levels for fiscal 2010 ($11.199 billion, versus $11.523 billion), and that the agency has lost the equivalent of 8,000 employees since 2009.

These cuts have, among other things, led the IRS to delay two IT projects and substantially reduce employee training. It has also led to service issues, the report suggested, including a near-doubling of waiting times on IRS phone lines since fiscal year 2009 — from 8.8 minutes to 16.8 minutes as of mid-March 2014.

The IRS is requesting a budget of $12.5 billion for fiscal 2015, an increase of 10.5 percent in funding and 8.3 percent in staffing, in part to improve enforcement and to handle some of the additional mandates placed on the service, such as those related to the implementation of the Affordable Care Act.

While the GAO report did say that budget cuts had hurt the IRS, it also said that extra money was not the only solution: The GAO has an open list of ways the IRS could improve its performance, such as eliminating duplicate programs and developing a long-term plan to improve its Web services.


For reprint and licensing requests for this article, click here.
Tax practice Finance
MORE FROM ACCOUNTING TODAY

The International Financial Reporting Foundation named Steven Maijoor as the next chair of the IFRS Foundation Trustees, effective Jan. 1, 2027, and Sam Woods as chair of the International Accounting Standards Board, effective Oct. 1, 2026.

1h ago
4 Min Read
ifrs-foundation-iasb-sign.jpg

UHY acquired Michigan CFO Associates in Clinton Township, Michigan, expanding the Top 50 Firm's advisory capabilities.

1h ago
1 Min Read
McCarty-Steve-UHY

New York City's new pied-à-terre tax is prompting financial advisors to help wealthy clients reassess their options, from residency status to estate plans.

August 10
4 Min Read

The Federal Accounting Standards Advisory Board is looking for a new leader to succeed its current executive director, Monica Valentine, who plans to retire at the end of this year after over 35 years at FASAB.

August 10
1 Min Read
The Lincoln Memorial, from left, Washington Monument and U.S. Capitol at sunset in Washington, D.C.

The IRS and the Treasury want taxpayers to take advantage of the federal Saver's Match program for retirement accounts as part of the new TrumpIRA.gov website.

August 10
2 Min Read
President Donald Trump signs an executive order

The Public Accounting Oversight Board today swore in Kyle Hauptman as a board member at a ceremony at the Securities and Exchange Commission.

August 10
1 Min Read
Kyle_Hauptman_official_photo.jpg