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Dark days at the IRS

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in Small Business Tax

According to the National Taxpayer Advocate (NTA), the problems facing the IRS due to the “Tea Party scandal” are just the tip of the iceberg. In her midyear report to Congress, NTA Nina Olson states that the IRS has reached crisis mode because its mission has greatly expanded with­­out a corresponding increase in funding. (IRS Internal Release 2013-63, 6/26/13)

The report also summarized the IRS bungles regarding the tax-exempt applications of conservative groups and establishes priorities for the Taxpayer Advocate Service (TAS). “IRS has, over the years, increasingly become responsible for administering social ben­­efits programs,” said Olson. “And, its budget was cut 8% over three years, including an 83% training budget decrease,” she added. Olson surmised, “To put it mildly, bad things will happen to taxpayers.”

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