“I thank the Chairman for holding this hearing on the Internal Revenue Service. I am pleased to have the Commissioner before us today.
“I have serious concerns about the effect of recent budget cuts on taxpayers, tax collection, and agency operations. In her most recent report to Congress, the National Taxpayer Advocate states that the most serious problem facing taxpayers is that the IRS is not adequately funded to serve taxpayers and collect taxes. I fully agree with this statement.
“This year, the agency’s budget was cut by over $300 million. This cut harmed taxpayers and telephone service. Telephone calls have increased by 34 percent, but the hours phones are answered have decreased by 20 percent. Only 65 percent of taxpayers seeking telephone assistance are able to speak to an IRS employee, and they must wait an average of 17 minutes. Taxpayers seeking in-person assistance also have been harmed. This is clear from the very long wait times at Taxpayer Assistance Centers.
“The budget cut also harmed agency operations. The cut forced the agency to lay off thousands of employees. The majority of these employees worked in Enforcement. They protected and collected revenue. This reduction does not help tax collection or reduce the deficit. It makes no sense.
“I look forward to discussing these issues and the agency’s proposed budget for next year.
“Finally, I would like to take a moment to thank Floyd Williams for his service and dedication to the agency and this Congress. As many of you know, Floyd is the Legislative Affairs Director of the IRS, and he plans to retire this summer. Floyd began his government service as a Congressional Page under Senator Fulbright of Arkansas many years ago. I have worked with Floyd in my role on this Subcommittee, and I know that he will be missed. I wish him the best as he retires. Thank you."
