I thank the Chairman for holding this hearing on the Internal Revenue Service. I am pleased to have the Commissioner before us today. I also thank the witnesses on the second panel for testifying today.
The practice of the agency seizing assets of taxpayers came to our attention through press reports at the end of last year. We were concerned that, in many of the press reports, the taxpayers were small businesses that made cash deposits from daily operations. We also were concerned that these taxpayers did not have a right to request a hearing in court within a reasonable time after their assets were seized.
I am glad that the agency changed its practice regarding these seizures in October 2014. The new policy only allows the agency to seize assets in certain cases. I look forward to hearing more about this policy today.
In closing, Mr. Chairman, I would like to state that I am concerned about the overall effects of the agency’s budget cuts on taxpayer service and enforcement. The agency’s funding was reduced by nearly $350 million from last year and is now at the lowest level of funding since fiscal year 2008. The growing gap between the agency’s increasing workload and its shrinking budget has led the National Taxpayer Advocate to state that the declining quality of taxpayer service is the most serious problem facing the agency.
Thank you.
