On Capitol Hill, NTEU Urges Increased Funding for IRS

Press Release February 10, 2016

Washington, D.C.—The union that represents front-line Internal Revenue Service (IRS) employees is urging Congress to boost funding for the beleaguered agency in fiscal year (FY) 2017.

The White House 2017 budget proposal would give the IRS $12.28 billion—an increase of about $1 billion over this year—bolstering the agency’s efforts to improve taxpayer services, collect more tax revenue to pay for most federal programs and services and narrow the deficit, according to the National Treasury Employees Union (NTEU).

In statements being submitted to the Senate Finance Committee for a hearing today and to a House Appropriations subcommittee for a hearing Thursday, NTEU National President Tony Reardon spells out why increasing IRS budget makes sense.

“NTEU believes that only by restoring critical funding for effective enforcement and taxpayer service programs can the IRS provide America's taxpayers with quality service while maximizing revenue collection,” he said.

The IRS is reeling from budget cuts totaling $1.2 billion enacted between 2010 and 2015. Though it received a $290 million funding increase for the current fiscal year, the IRS still has a long way to go to make up for losing 18,000 workers over that five-year period.

The administration’s FY17 funding proposal would enable the IRS to improve taxpayer services, combat identity theft and better enforce the federal tax code, Reardon said.

In a report last month, Taxpayer Advocate Nina Olson blamed severe budget cuts for the IRS’ abysmal customer service record during the 2015 filing season.

Just 38 percent of taxpayers who called with questions were able to get through to IRS employees, and that was only after being put on hold on average for more than 30 minutes. Lines also were longer than ever at skeletally-staffed Taxpayer Assistance Centers (TACs).

Timely assistance over the phone or in person is of particular importance for victims of identity theft and other types of refund fraud, the NTEU president said. “These cases are extremely complex cases to resolve and can be very frustrating for victims,” said Reardon.

Revenue collection also has taken a hit. According to the IRS, every dollar invested in IRS enforcement programs generates about $6 in increased revenues. Yet, because of budget cuts, the agency collected less revenue through enforcement efforts last year—$54.2 billion—than in FY 2007, when it brought in $59.2 billion, Reardon said.

“At a time when Congress is debating painful choices of program cuts and tax increases to address the federal budget deficit, NTEU believes it makes sense to invest in one of the most effective deficit reduction tools: collecting revenue that is owed, but hasn’t yet been paid,” Reardon said. “That is why NTEU was happy to see the administration’s budget request would provide a $587 million increase in funding for IRS tax enforcement above the current level.”

NTEU represents 150,000 employees in 31 agencies and departments.

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