Shulman Testifies Before Senate Finance Commitee

by Mike Godfrey, Tax-News.com, Washington

30 January 2008

Douglas Shulman, President Bush's nominee to become the next Commissioner for Taxation, has assured the Senate that he would continue with efforts to modernize the Internal Revenue Service, while overseeing 'rigorous' enforcement programs and striving to increase the agency's levels of service to the taxpayer.

"Since I've been nominated, many people have asked me if I would emphasize service or enforcement," Shulman said in testimony before the Senate Finance Committee on Tuesday. "But to be forced to choose between the two is a false choice. In order to execute its mission, the IRS must do both."

Shulman told the committee that while the IRS should make it as easy as possible for taxpayers to fulfil their obligations, it should come down hard on those who don't.

"For taxpayers who pay their taxes willingly and on time, which is the great majority of Americans, there must be clear guidance, accessible education, and outstanding service. Our aim should be to make it as easy as possible for them to pay the correct amount of taxes in the most efficient and least burdensome manner possible. For taxpayers who intentionally evade paying their taxes, there must be rigorous enforcement programs. But whether serving taxpayers or enforcing the law, it is absolutely essential that American's believe the IRS is fair and that it respects the rights of all taxpayers," he stated.

The President's nominee for IRS Commissioner also vowed to continue modernising efforts started under the stewardship of former agency heads, observing that:

"Thanks to Commissioners Rossotti and Everson, there are important initiatives currently in place that if confirmed I would anticipate continuing. I would also bring a fresh set of eyes to the position, and ensure that the agency continues to evolve as circumstances change."

Shulman added that he would make the updating of the agency's computer and information systems a "top priority".

"Any effort to improve services must include a commitment to IRS modernization. IRS employees must have timely access to taxpayer data so assistance is quick and accurate. This will require focusing on and investing in IRS processes, as well as the IRS's information technology systems."

He also pledged to work closely with the tax industry to improve rates of compliance.

"I believe that it is essential for the IRS to work closely with the practitioner community, including lawyers, accountants, and tax preparers – a vital part of our nation's tax compliance system. The IRS must use all the tools at its disposal – dialogue, education, service and enforcement – to ensure that these important members of the tax community are partners in our efforts to see that all individuals and institutions meet their tax obligations," he concluded.

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