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Washington, D.C.—Responding to concerns expressed by the leader of the National Treasury Employees Union (NTEU) regarding proposed Internal Revenue Service customer service cutbacks, members of Congress took decisive action in the Defense Appropriations bill to make clear to the IRS that their prohibition on cutbacks includes cuts to toll-free hotlines.

The fiscal 2006 Defense Appropriations bill (H.R. 2863) approved by the Senate yesterday contains a provision specifically prohibiting the IRS from cutting its telephone assistance service below the levels of October 2005. The bill is expected to be cleared by the House today.

The agency recently said it wants to cut back by approximately 20 percent the hours taxpayers can reach IRS telephone assistors. That would reduce by three hours each day the time such help is available.

When that idea was advanced by the IRS last week, NTEU President Colleen M. Kelley reacted angrily, describing it as a serious mistake in emphasis and resource allocation by the agency.

She pointed to language in other recently-approved legislation—the 2006 Transportation-Treasury Appropriations bill—directing the IRS to continue to make the improvement of its 1-800 helps line service a priority and to allocate the resources necessary to increase phone lines and staff for the service. President Kelley thanked Senators Kit Bond (R-MO) and Patty Murray (D-WA) and

Reps. Joe Knollenberg (R-MI) and John Olver (D-MA) for ensuring that taxpayers retain current access to telephone assistance.

The conference report on the Treasury bill also contains language preventing Taxpayer Assistance Center (TAC) closings and other customer service cutbacks until the Treasury Inspector General for Tax Administration (TIGTA) has studied those possible moves and reported to Congress on their impact. Under it, taxpayer services cannot be reduced or terminated until 60 days after the study is submitted and IRS is required to consult with stakeholders before any changes are made.

The IRS said last week it wanted to reduce by 15 hours a week the availability of telephone help—and to make the nationwide change on Jan. 23, 2006—the week the peak season starts for telephone tax help from the IRS.

Such a move would seriously impact voluntary taxpayer compliance with the tax laws, President Kelley said. Voluntary compliance is tied to the assistance taxpayers get from the IRS, she said. “Rather than cutting hours, this agency needs to do everything it can to make it easy for taxpayers to get the help they need. I welcome the clear understanding that Congress has of this direct relationship,” she added.

Earlier this year, the IRS said it would close 68 of its TACs across the country. That move, which would have adversely impacted large numbers of people, including lower-income taxpayers, those without access to the Internet and those for whom English is not their native language, generated a wave of protest led by NTEU members and chapters nationally.

In the face of the protests and the language contained in the Treasury appropriations bill, the IRS suspended the plan.

NTEU is the largest independent federal union, representing some 150,000 employees in 30 agencies and departments, including some 94,000 in the IRS.