The National Taxpayer Advocate Urges Congress to Prioritize Taxpayer Service and Technology Funding
Erin Collins, the national taxpayer advocate at the Taxpayer Advocate Service, recently spoke at a Senate hearing in Washington, D.C., highlighting the need for Congress to preserve taxpayer service and technology funding. The annual report released by the National Taxpayer Advocate criticized the “extreme imbalance in funding priorities,” emphasizing the importance of adequate funding for taxpayer services and technology modernization.
According to the report, the Inflation Reduction Act allocated a significant portion of its funding for enforcement, with only a small percentage dedicated to taxpayer services and technology. Collins emphasized that adequate funding for services and technology is crucial for improving taxpayer experiences, increasing compliance, and reducing the need for costly enforcement measures.
Despite the significant revenue collected through enforcement by the IRS, the majority of federal taxes are self-assessed through annual tax returns and timely payments. Collins warned against reducing enforcement funding without considering the potential impact on taxpayer services and technology, cautioning against inadvertently harming essential services.
Congress has previously rescinded IRS funding, and further cuts could be possible in the future. With Republican control of Congress and the White House, additional funding cuts to the IRS may be on the horizon. It is essential for lawmakers to prioritize taxpayer service and technology funding to ensure fair and efficient tax processes for all taxpayers.