A recent report from Nina E. Olson, the National Taxpayer Advocate, highlighted concerns in several key areas that she says are likely to contribute to the ongoing erosion of IRS taxpayer services and protections.
The Taxpayer Advocate Service is a branch of the IRS that represents the interests of taxpayers and provides oversight to the agency. In the 2014 annual TAS report to Congress, Olson explained that budget reductions over the past several years have led to declines in services to taxpayers, erosion of taxpayer protections and loss of oversight within the agency. Olson raised concerns that these issues contribute to a widespread loss of trust in the IRS could affect the future of tax compliance.
Budget cuts lead to declines in taxpayer services and protections
For example, Olson says she expects 2015 to be the worst year for taxpayer service levels in well over a decade. For example, according to the report, in 2015 the IRS is expected to:
- Answer fewer than half of the telephone calls it receives.
- Keep taxpayers on hold for an average of 30 minutes when they do manage to get through by phone.
- Answer far fewer questions from taxpayers about matters of tax law.
- Discontinue tax return preparation assistance services.
In 2004, by contrast, the IRS answered nearly nine out of 10 taxpayer calls and kept callers on hold for an average of less than three minutes. It also provided a wide range of tax-assistance services, including a toll-free hotline, approximately 400 walk-in sites and educational outreach programs that reached an estimated 72 million taxpayers.
