Thursday, August 15, 2013

Government Cuts and how it effects the IRS

Because of the tremendous government debt that has accumulated, the congress voted to decrease the funding to various governmental agencies.  The IRS was a casualty of these spending cuts. Now you may stand on one side of the fence or the other when you question if that was a cut worth taken. However, I and other colleagues in the tax world have felt the lack of IRS support when issues come up for either the owners of business or your average Joe.  The IRS has taken a few days off so far this year.  This is not so bad you just get a hold of them the next business day. But now it really has become difficult just to get thru to an IRS representative.  Hold times have increased and lately I'm getting a recorded message informing me that they have "heavy volume" and to either call the next business day or to go to their website. Going to their website is not an option, I call because only a IRS rep will be able to resolve the issue. 
A solution for the IRS is for them to have a live chat on their website.  That way you can get a IRS rep via real time. That way you can save money on phone calls and wait time.  I always wondered how much does the IRS pay monthly for their phone calls. That probably would be enough for the US government to pay for some of the programs they have cut. 
But it is just not that it is difficult to get thru, it is also taking longer for the IRS to get back when I send responses to them on cases that they need to review and make a decision on. I have sent out packages and clients call me and ask me what is going on? I ask them have you received any letters? To which they respond no. So then I need to take of matters and call the IRS which ties up their phone system even more.
I understand that congress wants to limit spending.  Hey I'm on board with that. I just do not think that cutting the IRS just to cut their budget, is not a good solution to a complicated problem. There is a lot of red tape in the IRS.  That needs to be resolved.  Using technology wisely is another issue. When I have a new case I need to send my power of attorney(POA) to the IRS rep via fax. That kills a lot of time.  There has to be a way for us to send POA's by internet. You can purchase goods by internet and pay by credit/debit card, really, lets get with the program and move this correspondence thing into the new millennium. Fax machines have been around since the 80's. Hey, is Reagan the president?
My point is, instead of just cutting a needed governmental agency so that our national debt doesn't hit the moon, lets see what is clogging up the drain so that it moves correctly.  Cutting the funds to the agency does not fix anything, in reality it just shows how inefficient the system has become. Lets get to the heart of the matter. If I was the IRS commissioner what I would say is please gives us back our funds, we are already behind regarding the work load. To compensate, I will facilitate the duties and work so that our costs go down on the back end and then the US government would not have to fund us the amounts previously given years past.

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