U.S. Senator Mazie K. Hirono, along with Senators Elizabeth Warren, Ron Wyden, and 15 other colleagues, has requested an investigation into the Trump Administration's recent decision affecting the Internal Revenue Service (IRS). They sent a letter to the Acting Treasury Inspector General for Tax Administration (TIGTA), urging her to examine the consequences of firing nearly 7,000 IRS employees and closing over 100 Taxpayer Assistance Centers (TACs).
The lawmakers expressed concern that these actions could hinder the IRS's ability to combat tax evasion by wealthy individuals and businesses while also degrading service quality for taxpayers. "Given the implications these mass firings and office closures may have on the quality of service provided by the IRS, an evaluation by your office would be consistent with your mission of ‘conducting audits and investigations that improve IRS operations,’” they wrote.
Before President Biden signed the Inflation Reduction Act (IRA), which allocated $80 billion to the IRS over ten years, the agency had been dealing with chronic underfunding. This funding allowed significant improvements in enforcement activities and taxpayer services.
“These investments made through the IRA will—if not rolled back by President Trump and Republicans in Congress—pay for themselves many times over... every dollar (spent) on the IRS’s enforcement activities results in $5 to $9 of revenue to fund investments in programs for the American people,” stated Hirono and her colleagues.
The layoffs ordered last month by the Trump Administration are expected to affect tax processing during filing season significantly. Reports indicate that many laid-off employees were part of a hiring surge aimed at enhancing service quality. The potential closure of more than 110 TACs is another point of concern as it may impact access to essential taxpayer services.
The senators' letter seeks TIGTA's assessment of whether these measures undermine progress made by previous investments intended to improve collection practices and overall taxpayer experience. They emphasized their request aligns with TIGTA's mission “to provide America's taxpayers top-quality service.”
The letter was also signed by Senators Richard Blumenthal, Cory Booker, Dick Durbin, Chris Van Hollen, Andy Kim, Angus King, Ed Markey, Jeff Merkley, Patty Murray, Jack Reed, Minority Leader Chuck Schumer, Jeanne Shaheen, Bernie Sanders, Peter Welch, and Sheldon Whitehouse.
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