IRS Must Reduce Services if Congress Cuts Budget Further, Says Acting Commissioner
Published November 06, 2013
Tax Analysts reports that the IRS's decision to end its disclosure authorization and electronic account resolution e-services for practitioners is "only the tip of the iceberg" of cuts it will increasingly have to make if Congress enacts deeper cuts to the agency's budget, acting IRS Commissioner Daniel Werfel told the American Institute of CPAs’ National Tax Conference in National Harbor, Md., on November 5. "We would be forced to downsize operations and would have to prioritize, devoting resources to only the most mission-critical activities," Werfel said, according to the report by William Hoffman. "If the IRS is forced to operate without adequate resources in the years to come, it would make more sense for us to perform a few key activities well, rather than do a mediocre job of performing a wider range of activities." Werfel said the discontinued e-services "are not coming back on our current budget trajectory" but that they could "under a different budget path." "The fact that we're moving critical services, in this case back to paper, is not the direction we want to take the organization," Werfel continued. "But again, ultimately there's a budget constraint that we have, and we have to make some tough choices along the way."