Anyone who has ever sat down and attempted to prepare their own taxes has likely experienced some level of bewilderment and frustration. For those taxpayers who can't afford or simply refuse to turn to a professional tax preparer for assistance, the IRS' customer service hotline is staffed with representatives who are ready to answer your tax-related questions. This year, however, the IRS commissioner himself is predicting that the calls and questions of an estimated 50 percent of taxpayers, who attempt to utilize the hotline, will go unanswered.
At a time when the economy has improved, the IRS has been hit with budget cuts. The agency's 2015 budget of $10.9 billion dollars represents nearly a 15 percent cut from its annual budget of five years ago. This significant decrease in funds equates to a 13,000 reduction in IRS employees, which has left the agency woefully understaffed and ill-equipped to help taxpayers.
If the agency continues to be the target of annual budget cuts, and improvements are not made to work within their new budgetary environment, frustrated taxpayers will likely make more tax errors, and many will be forced to turn to tax professionals. However, even tax professionals are expressing their frustration with the IRS' lack of customer assistance as a significant percentage of their questions about complex tax issues will also likely go unanswered.
For taxpayers, the only possible silver lining in the IRS' money woes is that the agency's enforcement division also saw a $160 million cut in funding this year. As a result, the agency has publically claimed it "won't collect $2 billion dollars through audits." This claim, however, may or may not pan out to be true as the IRS seems to always find a way to carryout tax audits that reap the agency big rewards.
If the agency continues to be the target of annual budget cuts, and improvements are not made to work within their new budgetary environment, frustrated taxpayers will likely make more tax errors, and many will be forced to turn to tax professionals. However, even tax professionals are expressing their frustration with the IRS' lack of customer assistance as a significant percentage of their questions about complex tax issues will also likely go unanswered.
Tax laws can be overwhelming, if you have concerns and need to speak with an irs tax lawyer:
Source: Fox 31 Denver, "Good luck reaching IRS customer care in 2015," Rob Low, Jan. 21, 2015
