Watchdog calls for more IRS funding as agency implements tax law

The IRS needs more funding as it implements the Republicans’ new tax law, according to the agency’s in-house watchdog.

“The IRS will have a lot of issues to work through, and taxpayers will have a lot of questions,” National Taxpayer Advocate Nina Olson said in a news release Wednesday. “But with more funding, strong leadership, and a closer working relationship with Congress, I am convinced the IRS can do the job well.”

Olson submitted her annual report to Congress on Wednesday, which highlights the most serious problems facing taxpayers. She also made legislative recommendations for how to strengthen taxpayer rights and improve tax administration, which come as key House Republicans say they want to tackle IRS reform this year.

The IRS saw its budget cut in the early part of the decade, and Republicans have criticized the agency in the wake of 2013 revelations that it subjected conservative groups’ applications for tax-exempt status to extra scrutiny.

In a preliminary estimate, the IRS predicted that it would need an additional $495 million in fiscal 2018 and 2019 to implement the tax law. The agency found 131 filing-season systems that will be affected by the new law.

Olson also said the agency can also make some changes to help taxpayers within its current budget.

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