For Immediate Release
April 6, 2006
Media Contact: Joelle Jordan
IRS Oversight Board Releases
FY2007 IRS Budget Report
Calls For Integrated Plan, Additional Funding To Address Tax
DC) The IRS Oversight Board released a report making its recommendations
for the IRS' FY2007 budget. The Board calls for $11.3 billion
to fund the IRS in FY2007; a 6.9 percent increase over the
previous fiscal year. The report also calls for a "multi-faceted
plan" supported with additional funding for the IRS to
address the tax gap - the difference between what is owed
and what is collected annually. The tax gap is estimated at
$345 billion of lost revenue annually.
Board's recommendations call for budget increases in four
IRS program areas:
million in taxpayer service, to maintain dramatically-improved
toll-free phone service. The Board calls for additional
funding that would help restore toll-free phone service
to FY2003/2004 levels and invest in telephone infrastructure.
million to boost support for virtually all IRS enforcement
activities, with a significant increase in research to better
understand enforcement and customer service needs and voluntary
million in Business Systems Modernization to continue long-term
investments in information technology that will improve
IRS productivity and reduce taxpayer burden.
million in infrastructure and management tools that will
help the IRS cope with unfunded mandates, implement BSM
projects, and restore leadership training to previous levels.
to making funding recommendations for the next fiscal year,
the Board calls for an integrated set of strategies to close
the tax gap, including:
information reporting and enforcement tools related to the
customer service to make taxpayers aware of their obligations,
and modern; technology to ease tax administration burdens;
focus on research;
productive partnerships between the IRS and tax professionals;
emphasis on personal integrity.
must address the tax gap in a way that's smart and realistic,
while maintaining a critical balance between enforcement and
customer service," said Board Chairman Raymond T. Wagner,
Jr. "The IRS Oversight Board's budget recommendations
set the stage to do just that. An integrated approach, from
a simpler tax code to a better understanding of compliance,
along with a modest increase in key areas, will help the IRS
take on the tax gap at a fiscally-challenging time for our
nation. However, planning is not enough. It is also critical
to provide sufficient resources to address the problem."
version of the complete report, "IRS
Oversight Board FY2007 IRS Budget Recommendations/Special
is available on the Board's web site at www.irsoversightboard.treas.gov/.
September 22, 2011