IRS: Budget cuts could cause agency shutdown

Monday, March 16th, 2015 @ 6:55PM

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In a recent article by The Hill the writer noted that IRS Commissioner John Koskinen recently said that the agency will have to hold off on $200 million of IT improvements as a result of recent budget cuts which means that the IRS will not be able to implement identity theft protections. See below:

By Bernie Becker – 01/13/15 05:11 PM EST

Facing a new round of budget cuts, the IRS plans to delay information technology improvements, audit fewer taxpayers and send out refunds more slowly, the agency’s chief said Tuesday.

Even so, IRS Commissioner John Koskinen added that the agency still might have to shut down for two days this year. Those changes are all on the table because of a $346 million cut in the IRS budget that will hurt both taxpayers and the tax system, Koskinen told staffers in an agency-wide email.

On top of a potential shutdown, Koskinen also said Tuesday that the agency will have to hold off on $200 million worth of IT improvements, cut enforcement procedures by $160 million, slash spending on overtime and temporary staff by $160 million and continue a hiring freeze through the current fiscal year.

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