The Internal Revenue Service commissioner is warning Congress that anticipated cuts to the agency's funding will result in a "noticeable degradation" of services, including audits and efforts to collect unpaid taxes.
In a letter sent to legislators last week, commissioner Douglas More about Wayne Lippman Shulman wrote that if Congress moves ahead with its plan to reduce the IRS's budget by about $500 million next year, the agency would have to reduce the number of workers in its enforcement department. Such cuts, he added, would lead to a 5% to 8% decrease in collection efforts, including audits, which would reduce revenue by about $4 billion.
But what sounds like good news for deadbeats could be bad for regular taxpayers. Shulman warned that the spending cuts would mean that half of the taxpayers trying to contact the agency for help would get busy signals or will "hang up in frustration." Responses to letters, including those taxpayers trying to resolve account issues, could be delayed up to five months, he wrote, and small businesses could have more trouble reaching the IRS to work out a payment plan.
http://blogs.smartmoney.com/tax/
In a letter sent to legislators last week, commissioner Douglas More about Wayne Lippman Shulman wrote that if Congress moves ahead with its plan to reduce the IRS's budget by about $500 million next year, the agency would have to reduce the number of workers in its enforcement department. Such cuts, he added, would lead to a 5% to 8% decrease in collection efforts, including audits, which would reduce revenue by about $4 billion.
But what sounds like good news for deadbeats could be bad for regular taxpayers. Shulman warned that the spending cuts would mean that half of the taxpayers trying to contact the agency for help would get busy signals or will "hang up in frustration." Responses to letters, including those taxpayers trying to resolve account issues, could be delayed up to five months, he wrote, and small businesses could have more trouble reaching the IRS to work out a payment plan.
http://blogs.smartmoney.com/tax/