Full Text: Kolbe Opening Statement at Treasury Appropriations Hearing

February 26, 1998

[1] We are pleased this morning to welcome before the subcommittee Mr. Charles Rossotti, the Commissioner of the Internal Revenue Service. This is Mr. Rossotti's first appearance before the Subcommittee, having been sworn in as Commissioner on Novermber 13th of last year. Mr. Rossotti has come on board at a time when the IRS is facing a number of enormous challenges. Among those challenges are: assuring that IRS systems will continue to function on January 1, 2000; moving forward with the badly needed modernization of IRS' computer systems; and implementing the IRS restructuring legislation currently being considered by the Congress. On top of those items, the Commissioner has now placed his own proposal for modernization of the Internal Revenue Service.

[2] Mr. Commissioner, we look forward to working with you as you attempt to address these complicated issues. We are pleased that you are taking such an active role in both the management and technology issues facing the IRS. For too long, these critical components of IRS operations have been without adequate leadership from the top.

[3] We are particularly interested in the concept of modernizing the IRS that you have described in you statement. We hope that you will keep us fully informed as you go through the process of validating this concept. The IRS can only benefit from a fundamental restructuring. As we heard in last year's Senate hearings, it has become an organization unresponsive to its customers -- the taxpayers. Those types of taxpayer abuses cannot and will not be tolerated. This Subcommittee will begin to aggressively use performance measures in making judgments about the appropriate funding levels for IRS programs.

[4] I also want to welcome back Mr. Arthur Gross. As my colleagues know, this will be Mr. Gross' last appearance before the subcommittee as he has decided to leave the IRS to pursue other interests. I think I can speak for my colleagues when I say that we are very grateful for the service that Mr. Gross has provided. He has done a remarkable job of turning around the IRS' tax systems modernization program and leaves behind the building blocks that IRS needs to take it to the next century.

[5] Having said that, I must point out that the tax systems modernization program is something we remain very concerned about. The General Accounting Office has just this week issued a report that expresses doubt about the IRS' ability to implement and enforce the modernization blueprint once it is completed. I can assure you that we will continue to monitor this program very closely so we do not wind up in the position we were a couple of years ago -- billions of dollars spent with nothing to show for it.

[6] I would also like to say a word about the IRS budget request for fiscal year 1999, which is $529 million above the amount we appropriated last year. We recognize the importance of the programs for which you have requested increases. However, the realities of the budget will make it difficult for us to accommodate all of those increases. As we go through this appropriations cycle, I hope you will help us to prioritize the many initiatives you are asking us to fund.

[7] Mr. Commissioner, we look forward to your testimony. We will place your entire prepared statement in the record and ask that you summarize it for us. Before you begin, however, I would like to recognize Mr. Hoyer for any opening remarks that he would like to make.