How do IRS budget cuts affect taxpayers and the tax system?
Congress has been reducing the budget of the Internal Revenue Service even as the IRS workload keeps increasing. How do IRS budget cuts affect the ability of honest taxpayers to comply with the law and the ability of the IRS to enforce the law? What can the IRS do to meet its responsibilities within tighter budget constraints? Can reliance on technology improve enforcement and taxpayer service, and what are the potential drawbacks of substituting automated systems for personnel?
On April 8, the Urban-Brookings Tax Policy Center hosted IRS Commissioner John Koskinen, who summarized the effects of budget cuts and how the IRS is responding. Following the commissioner’s remarks, a panel of experts further explored the consequences of and potential responses to budget cuts.