Congress is willing to give corporations all manner of tax assistance

by Prometheus 6
April 10, 2005 - 11:26am.
on Economics

I.R.S. to Close Walk-In Centers as Agency Faces Tighter Budget
By DAVID CAY JOHNSTON
Published: April 10, 2005

After widely publicized hearings seven years ago, Congress passed a law ordering the Internal Revenue Service to enhance services to taxpayers, improvements that were financed by cutting enforcement of the tax laws to make sure telephones were answered and forms were readily available. That era is now ending.

The I.R.S. will close up to 105 of its 367 walk-in centers, which dispense forms and advice, said Mark W. Everson, the agency's commissioner. Hours when the I.R.S. answers telephone calls will also be reduced, he said. After the current tax return filing season ends on Friday, people with simple tax returns will no longer be able to file using a touch-tone telephone. Last year 3.8 million taxpayers, most of them with low incomes, used this Tele-File system.

President Bush, in his budget for the fiscal year that starts Oct. 1, wants to cut money to respond to taxpayer requests for help by 1.3 percent and money to reach out to taxpayers by 6.8 percent compared with the current fiscal year. The $57 million in proposed cuts is about one-half of 1 percent of the I.R.S. budget of 10.2 billion.

The walk-in center closings and related cuts will save $17 million to $21 million annually, Mr. Everson said.