IRS Oversight Board – FY2014 IRS Budget Recommendation Special Report

by Sabrina I. Pacifici on June 5, 2013

IRS Oversight Board Report – FY14 IRS Budget: “In June 2012, the IRS Oversight Board recommended to Treasury a Fiscal Year (FY) 2014 budget of $13.074 billion for the Internal Revenue Service. This is $213.6 million more than what the President put forth in his FY2014 budget request. After careful examination and deliberation, the Board believes the President’s recommended funding is appropriate for the IRS to carry out both its statutory and additional new responsibilities. The IRS’ budget has been reduced since FY2010, with the biggest reductions coming in FY2013 through the sequestration. Although the IRS has achieved significant cost savings and efficiencies in recent years through substantial cuts in program support and IRS staffing, this path is no longer sustainable. While many factors impact IRS performance, such as the state of the economy, there are already indications that the reductions in IRS budgets funding through FY2012 are leading to a deterioration in performance. The amount of enforcement revenue collected, the level of service on the IRS toll- free assistance line, and measures of taxpayer satisfaction with the IRS and of IRS employee engagement are all down in FY2012 compared to where these results stood in FY2010. The effects on the cuts will likely be even more pronounced in FY2014. [emphasis added].”

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