IRS, Workforce Organizations Respond to Proposed Measures by Lawmakers with Tax Season Underway
In a letter to Internal Revenue Service (IRS) Charles Commissioner Rettig and Treasury Secretary Janet L. Yellen, 25 Senators and nearly 200 Representatives urge the IRS to consider steps to ease the taxpayers’ burden ahead of filing season. As previously reported by FEDmanager, the IRS backlog is extensive including 11.8 million unprocessed tax returns and nearly 5 million pieces of correspondence.
The lawmakers requested the IRS consider instituting the following:
Postpone automated collections for at least 90 days after Tax Day;
Delay collection of penalties from filers until active and pending penalty abatement requests are resolved;
Streamline the reasonable cause penalty abatement process for taxpayers affected by COVID-19;
Reduce targeted tax penalties for taxpayers who have paid at least 70 percent of the taxes due for the 2020 and 2021 tax years; and,
Expedite returns and provide timely responses to tax administration staff.
The IRS responded Thursday, stating that it is reviewing all suggestions, but its outdated technology and legal mandates do not allow for much.
"Our employees have worked hard, long hours during the pandemic to assist taxpayers and successfully modify our systems, despite lacking the funding that we need to adequately serve the American people.” IRS Commissioner Chuck Rettig said in response, “We are continuing to balance multiple unprecedented demands, including starting the filing season as well as continuing to work on important new tax provisions. The IRS has been operating in an all-hands-on deck approach, leaving nothing off the table for consideration to improve overall service. We will rapidly adapt to changing circumstances, when appropriate to do so."
In comparison to some requests by lawmakers, this request recognizes the agency’s “antiquated technology and a constrained budget.” This acknowledgement, however, does not necessarily align with their requests, according to workforce organizations. Professional Managers Association (PMA) Executive Director Chad Hooper found the Congressional asks muddled and disconnected from current IRS procedures and legislative efforts.
PMA—which represents IRS managers' and non-collective bargaining unit eligible employees—countered by making clear that the IRS cannot meet Congressional demands with the agency's present operational capacity and budget constraints. The disconnect between Congressional demands and funding, coupled with two decades of budget cuts and a 60-year-old computer system, contributes to a cascade of challenges during filing season for taxpayers and IRS employees alike.
"In the short term, Congress can ease the burden by passing robust appropriations to allow for the hiring, onboarding, and training of new employees," stated Hooper, "In the long term, dedicated multi-year funding for technology modernization would allow the IRS to improve electronic systems and take significant burdens off paper processing."
Likewise, the National Treasury Employees Union (NTEU) responded with a release titled “Tax Season Tip: Fund the IRS.” NTEU National President Tony Reardon said IRS employees are prepared to deal with the problem; however, Congress must address a decade of budget cuts, a reduced workforce, and an increased workload, before pointing the finger.
“It’s fine to give Americans tips on how to speed up their refunds, but we have one big tip for Congress: Give the agency the resources it needs to dig out of the backlog hole and deliver a smooth successful filing season for all,” stated NTEU National President Tony Reardon, "Fortunately, Congress has an IRS improvement plan already on its desk, ready to…revolutionize the agency and allow it to build back its staffing levels and resources to drastically improve customer service and enforcement of the tax code.”
