Washington (May 8, 2003) -- The American tax system is severely over-taxed despite the recent restructuring of the Internal Revenue Service, reports the IRS Oversight Board.

"A steadily increasing demand on tax administrative service, and a steady real decline in IRS resources" is making the IRS more prone to make errors in processing returns and less likely to detect "manipulation" by fraudulent preparers, the Board says in its annual report.

The Board urges the IRS to enlist the Bush Administration and Congress to beef up its resources and seek change in the tax system to make its job easier.

It also said that resources are falling while there has been a steady rise in "opportunities for manipulation and for error" in tax return processing. If the IRS had all the resources it needs, according to its own estimate, it could bring in an additional $30 billion per year in revenue.

-- WebCPA staff

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