Underfunded IRS struggles to send refunds, answer calls

[Omaha Steve]

Source: AP

By SARAH SKIDMORE SELL

2019 was another tough year for the IRS, according to a new federal report.

Burdened with years of budget cuts and a recent increase in workload to implement a new tax law, the IRS struggled to deliver on its mission in the past fiscal year. The annual report from the Office of Taxpayer Advocate found that in the 2019 fiscal year, among other problems, the IRS was late in sending legitimate refunds to many taxpayers and failed to answer the majority of phone calls from taxpayers. The agency also failed to collect billions in unpaid taxes.

The Taxpayer Advocate’s role — while inside the IRS — is to ensure sure taxpayer rights are being fairly represented. Among those duties is an annual report to Congress, which lists the most serious problems facing taxpayers. The report is often critical of the agency, and this year’s edition released Wednesday was no exception

The Advocate’s report found that the IRS is one of the lowest performing federal agencies in terms of customer service. The agency answered only 29 percent of the 100 million telephone calls it got during the 2019 fiscal year.



FILE - This April 13, 2014, file photo shows the Internal Revenue Service (IRS) headquarters building in Washington. 2019 was another tough year for the IRS, according to a new federal report. Burdened with years of budget cuts and a recent increase in workload to implement a new tax law, the IRS struggled to deliver on its mission in the past fiscal year. The annual report from the Office of Taxpayer Advocate found that in the 2019 fiscal year, among other problems, the agency failed to collect billions in unpaid taxes. (AP Photo/J. David Ake, File)


Read more: https://apnews.com/aad7a3baaf338272c157bae07668ed43

[bucolic_frolic]

1. Ideas that started out simply and are now burdened with rules

IRS
USPS
eBay
Vehicle inspections
Building codes

[turbinetree]

2. How the IRS Was Gutted

An eight-year campaign to slash the agency’s budget has left it understaffed, hamstrung and operating with archaic equipment. The result: billions less to fund the government. That’s good news for corporations and the wealthy.

by Paul Kiel and Jesse Eisinger Dec. 11, 2018, 5 a.m. EST

This story was co-published with The Atlantic.

In the summer of 2008, William Pfeil made a startling discovery: Hundreds of foreign companies that operated in the U.S. weren’t paying U.S. taxes, and his employer, the Internal Revenue Service, had no idea. Under U.S. law, companies that do business in the Gulf of Mexico owe the American government a piece of what they make drilling for oil there or helping those that do. But the vast majority of the foreign companies weren’t paying anything, and taxpaying American companies were upset, arguing that it unfairly allowed the foreign rivals to underbid for contracts.

Pfeil and the IRS started pursuing the non-U.S. entities. Ultimately, he figures he brought in more than $50 million in previously unpaid taxes over the course of about five years. It was an example of how the tax-collecting agency is supposed to work.

But then Congress began regularly reducing the IRS budget. After 43 years with the agency, Pfeil — who had hoped to reach his 50th anniversary — was angry about the “steady decrease in budget and resources” the agency had seen. He retired in 2013 at 68.

After Pfeil left, he heard that his program was being shut down. “I don’t blame the IRS,” Pfeil said. “I blame the Congress for not giving us the budget to do the job.”

https://www.propublica.org/article/how-the-irs-was-gutted

[Dustlawyer]

4. The same thing has been done to all of the regulatory agencies such as OSHA, EPA, NTSB...

Refineries and chemical plants are asked to "self-report" their violations because there is not the budget and staff to inspect. They cannot even investigate all of the explosions, fires or chemical leaks that are reported.

Explains why 50,000 Texans had to evacuate their homes the day before Thanksgiving when a chemical plant owned by Wall Streeters blew up (TPC).

[turbinetree]

7. I grew up with the thought and was told that all of the agencies you and I are speaking

about helped make us safe and also got dead beats, and ever since the 1980's they have been under attack, this coming election means we have got to take back this country.

To be honest I couldn't live in Texas now, did when I military brat, but not today, the state has stripped everything in my opinion to let the industries run the state, with there self enforcement rules.....................

[Vinca]

3. Our accountant usually sends us information at the end of the year about the coming year,

but so far nothing. They probably haven't got a clue what Trump's IRS is going to do and will be playing catch up as tax day nears.

[PSPS]

5. Crooks like to de-fund the police. tax cheaters like trump & the gop are good with this

[ancianita]

6. Guess that means fewer audits for the rest of us.

[Merlot]

8. It actually means fewer audits for the rich, more audits for every one else

[Aristus]

9. Okay. How many Trumpsters out there thought "Defunding the IRS means 'no more taxes' "?

No, it means 'you may not get your tax refund.'

God, I hate stupid people...