Taxpayers are facing the worst service from the Internal
Revenue Service since at least 2001, with more than half of callers unlikely to
get through to the agency and average hold times of 30 minutes or more,
according to a new government report. The service troubles are being triggered
by a combination of IRS budget cuts and increased workloads at the agency, said
the National Taxpayer Advocate report.
The filing season—which starts next week—could even become a
political battleground, with Democrats blaming the problems on GOP budget cuts,
and Republicans pointing to confusion about President Barack Obama’s
health-care overhaul.
IRS Commissioner John Koskinen warned in an email to
employees this week that the budget cuts could lead to delayed refunds for some
taxpayers. He noted that people who file paper returns could wait an additional
week or longer for their refunds. Mr. Koskinen also said the expected wait
times for callers are “unacceptable to all of us.”
The IRS handles about 100 million phone calls a year and
processes 150 million returns by individuals. The agency’s best year for
service was in fiscal 2004, when it answered 87% of calls from taxpayers, and
hold times averaged 2.5 minutes. This year, fewer than half of callers will get
through, perhaps as few as 43%, Ms. Olson said. Hold times will average 30
minutes—even longer during peak times.
In addition to congressional budget cuts pushed by
conservative Republicans in recent years, the agency also faces heavier
workloads stemming from Mr. Obama’s signature Affordable Care Act, as well as
new reporting requirements for foreign financial accounts, the report said.
Republicans contend the IRS can make better use of its funds
due to improved technology, but some believe the agency deserves to be squeezed
because of its alleged targeting of tea-party groups for scrutiny as they
sought tax-exempt status. Democrats generally argue the IRS needs more money to
function effectively, and budget cuts are hurting enforcement and revenue
collections.
The new report questions whether congressional overhauls of
the IRS in the late 1990s are being undermined by the current pressures. It
recommends that Congress enact a Taxpayer Bill of Rights, including a “Right to
Quality Service,” and provide funding to make it a reality.
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