IRS Not Prepared for Disasters

The IRS is not well prepared in the event of serious disasters, according to two new reports by the Treasury Department's inspector general.

A new report by the Treasury Inspector General for Tax Administration faulted the emergency preparedness of IRS facilities. "Plans used by the IRS to respond to emergencies were not always complete or subject to regular exercises or tests to ensure readiness," said the report. "As a result, TIGTA believes that in the event of an actual emergency such as a terrorist attack or natural disaster, these deficiencies could result in delays in safeguarding employees and visitors and in beginning efforts to recover critical business processes such as collecting tax revenue, processing tax refunds, and responding to taxpayer inquiries."

A man was indicted just days ago for ramming his vehicle into an IRS building (see Man Indicted for Ramming IRS Building).

Another new report from TIGTA criticized the IRS's ability to recover, restore and resume normal business operations after a disaster or an emergency. "An extended disruption could affect key processes such as collecting taxes, processing tax returns and refunds, and responding to taxpayer inquiries," said the report. "Processing delays could ultimately have a negative impact on the nation's economy and future taxpayer compliance."