IRS Faces Challenges Implementing Tax Bill
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What’s the story?
Now that the Tax Cuts and Jobs Act has been signed into law, the IRS "will have to figure out how to interpret and implement the hundreds of pages of changes to the tax code that were just passed, at a time when it is already struggling with budget cuts and staff reductions," NPR reported.
Why are the challenges?
Former IRS Commissioner John Koskinen told National Public Radio that because the agency uses Kennedy-era programs, even simple changes to the tax code are complex.
"A lot of our forms are hard-coded, so you don't just enter a little thing in your computer, you actually have to go into the code and change the date or change the forms," he said.
Koskinen added that the job is made more difficult because the IRS’s budget has been cut by $900 million since 2010, resulting in 21,000 fewer employees.
"If the budget continues to be cut, and that's what the Senate and the House are proposing to do even with this massive tax overhaul… you're actually at some point gonna make the IRS dysfunctional."
According to the National Treasury Employees Union, which represents federal employees, the House Appropriations Committee would cut the IRS budget by an additional $155 million, and the Senate Appropriations Committee would cut it by $124 million.
"One place where the lack of IRS personnel might be most apparent," NPR reported, “is the agency’s taxpayer help line.” Last year, the IRS couldn’t handle all the calls from taxpayers seeking help on their returns, and “many were kept waiting on hold for over an hour.”
In 1986, during the last major tax overhaul, Congress appropriated more money for the IRS to hire additional personnel.
What do you think?
Should Congress increase the IRS’s budget? Or do you support cutting it further? Hit Take Action and tell your reps, then share your thoughts below.
—Josh Herman
Related Reading
New Tax Law Means Flurry of Work for Payroll Depts, Accountants and… You?
Does the Commissioner of the IRS (John Koskinen) Need to be Impeached?
(Photo Credit: LPETTET / iStockphoto)
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