IRS Oversight Board Says the IRS Will Be Hurt by Omnibus Bill

"What is particularly troubling to the Board is that during this time of fiscal austerity, the IRS is leaving billions of dollars on the table simply because it doesn't have the resources to do its job. To the Board's private sector members and most of our fellow taxpayers, that doesn't make a lot of economic sense. To pay a little more to get a lot more back does," Mr. Wagner said today.

The omnibus appropriations bill funds the IRS at $10.233 billion for FY 2005, a one-half percent increase from the FY 2004 funding level. The IRS Oversight Board believes that it will leave the already strapped agency with fewer resources when inflation and the 3.5 percent federal civilian pay raise are factored in. Moreover the FY 2005 funding level is not only a dramatic reduction from the Board's recommendation but falls $441 million short of President Bush's request.

He added, "We must face up to the hard truth. Funding at this level will weaken the IRS and make it more difficult for it to do the job it must on behalf of America's taxpayers. The IRS' long-term strategic plan calls for improved service to taxpayers, enhanced enforcement of the tax laws, and modernized business processes and technology. These worthy objectives are only possible if they are funded at appropriate levels," the Board Chair observed.

Board Business Transformation Committee Chair Larry Levitan stated, "The IRS and CIO Todd Grams are to be commended. By taking a more rigorous and disciplined approach and insisting on greater accountability from the Prime contractor, the once troubled BSM program is beginning to deliver tangible benefits to taxpayers and producing real cost savings. This is not the time to turn away from this program. We are at the critical stage of some of the most important projects and there are no givens. Now is the time for greater vigilance and resolve and a solid resource commitment to see BSM through to a successful conclusion."