Former Commissioner Says IRS Is Overstretched

by Leroy Baker, Tax-News.com, New York

06 October 2003

Whilst the Internal Revenue Services has made vast improvements to its service in the last few years, according to former IRS Commissioner Charles Rossotti, the organisation lacks the funding to fulfil its ever-expanding remit.

In a speech to the Council for Excellence in Government last week, Rossotti, who is widely credited with initiating the modernisation process in the IRS during his five year tenure to 2002, observed that "a much more balanced focus on serving the people who pay the taxes as well as collecting the money that they pay," had been created, adding that this was a "big change" in the agency's culture.

However, Rossotti recognised that what the IRS needs going forward is more money. Whilst electronic filing, more advanced technology and 'competitive sourcing' had achieved much, these reforms alone could not make up for the lack of basic funding, he stressed. "We still need money," argued Mr Rossotti. "You can't do these things for free."

The former Commissioner also advocated the simplification of certain aspects of the tax code, particularly the multiple definitions of 'child' and 'family' which many taxpayers struggle to comprehend. In addition, Rossotti suggested that the tax code would benefit from streamlining the rules concerning savings and retirement accounts.

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