Washington (May 5, 2003) -- The Internal Revenue Service Oversight Board says that the IRS is at the critical halfway point of its modernization effort, but more effort and greater funding is necessary.

The Board's annual report said that ultimate success hinges on adequate and stable funding. It calls for a 2 percent increase in staffing each year for the next five years, full-funding for the Business Systems Modernization program, and increased IRS productivity.

“The IRS has accomplished a great deal since the enactment of the IRS Restructuring and Reform Act of 1998,” said Chair Nancy Killefer. “But it can meet RRA 98’s mandate only if it continues to work harder and smarter, and has the funding it needs.”

The Board called for the IRS, the Administration, and Congress to work together to close the compliance gap, boost customer service, commit to modernize the IRS computer systems, focus on its workforce by developing a comprehensive, agency-wide strategic human resources initiative, measure long-term goals, and simplify the tax code. The Board's report reminded Congress that complexity adds to taxpayers’ burdens, and makes it more difficult and expensive for the IRS to enforce the law.

-- WebCPA staff

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