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Washington, D.C.—The 5 percent increase in funding for the Internal Revenue Service (IRS) included in the fiscal 2010 Financial Services and General Government Appropriations bill markup today by a key House subcommittee will result in additional tax revenue at a critical time for our nation, said the leader of the union representing IRS employees.

National Treasury Employees Union (NTEU) President Colleen M. Kelley applauded the administration’s proposal for a $600 million increase in IRS funding in fiscal 2010, and in particular its call to boost resources to address enforcement of the nation’s tax laws. The White House has proposed an IRS budget of $12.1 billion in fiscal 2010, up from $11.5 billion this fiscal year.

“Investing in enforcement operations at the IRS will result in additional tax revenue with an average return on investment of $5 for every $1 spent,” said President Kelley.

Increased enforcement staffing is a priority. “Over the past decade, the IRS has experienced a significant increase in the number and complexity of tax returns, while enforcement staffing declined by as much as 30 percent since 1995,” the NTEU leader noted.

In testimony submitted to the House Appropriations Subcommittee on Financial Services and General Government last month, President Kelley stated: “We believe the president’s request will allow the IRS to continue providing taxpayers with top-quality service and will assist efforts to enhance taxpayer compliance and close the tax gap.” The gap between taxes owed and those paid is put at some $345 billion annually.

At the same time, President Kelley reminded the subcommittee that enforcement efforts and enhanced, multi-faceted taxpayer customer service programs go hand-in-hand. “Helping taxpayers become and remain compliant is a critical part of the equation,” she said.

She cautioned that should the administration’s budget assumption of more than $118 million in so-called efficiency savings not materialize in the coming fiscal year, taxpayer services could be impacted.

NTEU also applauded the addition of $10 million over and above the president’s request for the Securities and Exchange Commission (SEC). NTEU requested the additional $10 million in resources for the SEC.

“Clearly, the SEC has major responsibilities to tackle in the days and months ahead. I am confident with new leadership, additional resources and a dedicated and experienced workforce, those challenges will be well met,” said President Kelley.

NTEU is the nation’s largest independent union of federal workers, representing 150,000 employees in 31 agencies and departments.