IRS Bitter About Budget

Dec 11, 2014

It seems that IRS Commissioner John Koskinen is too busy steaming over the IRS budget cuts to worry about the Republicans and Democrats battling over the tax extenders. He states “Our (The IRS) job is tax administration; we’re not the tax policy people.”

Koskinen adds “I don’t know who got our $500 million but I’ll bet they’re not gonna give you back the $2-$3 billion that we would have if we had it.” Stating that the IRS funding as his toughest challenge since taking office last December.

IRS brings in money even though the budget has been cut and challenges have increased. In an effort to make up the difference of $850 million, the IRS has cut its staff and has been able to do more with less help which Koskinen says is doable for a while “and then you run into a wall. You really do get what you pay for.”

In reality haven’t a lot of us taken a hit? Most businesses had to make cuts when the economy began to suffer a few years ago. It started with the budget cuts and then personnel followed and it spiraled down from there. The IRS isn’t exempt from change, but they sure think they should be. With the budget cuts, the addition of the Affordable Care Act (ACA) and Foreign Account Tax Compliance Act (FATCA) this year, Koskinen is “predicting a miserable 2015 tax filing season.” Again, aren’t a lot of us tax professionals predicting a difficult year with the addition of ACA and the thought of the IRS only answering 53% of their phone calls?

His use of the word miserable isn’t what we need to hear at all. I would like to think that instead of whining about his budget, that the IRS Commissioner of all people would be the one to want to stay positive and not play the doom and gloom role. Cleary he is looking for sympathy, but he won’t be getting it here.

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