STATEMENT OF ADMINISTRATION POLICY
H.R.
1206 – No Hires for the Delinquent IRS Act
(Rep.
Rouzer, R-NC, and 25 cosponsors)
H.R.
4890 – IRS Bonuses Tied to Measurable Metrics Act
(Rep.
Meehan, R-PA, and Rep. Sessions, R-TX)
H.R.
3724 – Ensuring Integrity in the IRS Workforce Act of 2015
(Rep.
Noem, R-SD, and eight cosponsors)
The
Administration opposes H.R. 1206, the No Hires for the Delinquent IRS
Act; H.R. 4890, the IRS Bonuses Tied to Measurable Metrics Act; and H.R.
3724, the
Ensuring Integrity in the IRS Workforce Act of 2015. These bills would
impose unnecessary constraints on the Internal Revenue Service's (IRS)
operations without improving the agency's ability to administer the tax
code and serve taxpayers.
H.R.
1206 would prohibit the IRS from hiring any new employees until the
Secretary of the Treasury certifies that no IRS employee has a seriously
delinquent debt, or
provides a report to the Congress that includes an explanation of why
certification is not possible and what would be required to provide such
a certification. The bill could result in the IRS being prohibited from
hiring any new employees for any purpose – a drastic and
counterproductive step that would compromise tax administration and
taxpayer services. The bill is also unworkable in operation, as
"seriously delinquent" debts could be as low as $1 and tax liens are
recorded on a case-by-case basis. This legislation is unnecessary, as
strong laws and procedures already exist to ensure that IRS employees
comply with their tax obligations. Publicly-available data show that
IRS employees are among the most tax compliant groups in the Nation with
a delinquency rate of less than 1 percent.
H.R.
4890 would ban performance awards to IRS employees until the Secretary
of the Treasury develops and implements a comprehensive customer service
strategy. This bill is unnecessary, as the IRS has already developed
and has begun to execute a strategy to improve taxpayer services. The
real constraint on the IRS's ability to serve taxpayers effectively is
severe underfunding, including for taxpayer services. IRS funding is
more than $900 million below its 2010 level, before adjusting for
inflation. These budget cuts have impeded the IRS's ability to serve
taxpayers, including inadequate responses to taxpayer calls and
correspondence. Filing season statistics show that taxpayer service has
improved this year as a result of a small funding increase provided
last year, but more resources are needed to serve all taxpayers
effectively and efficiently. Legislation constraining the IRS's ability
to retain and recruit highly qualified employees is not needed and
could be counterproductive to the Service's mission.
H.R.
3724 would prohibit the IRS from rehiring any employee who was
involuntarily separated due to misconduct. The bill as written could
force the immediate termination of employees who had been terminated and
rehired many years ago, even if their performance since rehiring has
been blemish-free. The bill's prohibition is also unnecessary because
current IRS processes already ensure the agency does not rehire former
employees who had significant conduct or performance problems during
prior employment with the agency.
H.R.
4885 – IRS Oversight While Eliminating Spending Act of 2016
(Rep.
Smith, R-MO, and nine cosponsors)
The
Administration strongly opposes H.R. 4885, the IRS Oversight While
Eliminating Spending Act of 2016, which would reduce the resources
available for the Internal Revenue Service (IRS) at a time when the IRS
is severely underfunded. By further constraining IRS resources,
H.R. 4885 would have detrimental effects on the IRS's ability to provide
quality service to taxpayers, administer the tax code, and enforce tax
laws.
H.R.
4885 would repeal the IRS's longstanding legal authority to offset the
cost of providing services to taxpayers with user fees. The IRS has had
this authority since 1995, and charges user fees for a variety of
services. Repealing this authority would reduce overall IRS resources
by roughly 4 percent, compounding budget cuts that have left the IRS
severely underfunded and reversing the limited progress the IRS has been
able to make on taxpayer service levels this year after receiving a
modest funding increase in fiscal year 2016. Even with this small
increase, the IRS budget remains more than $900 million lower than it
was in fiscal year 2010, before adjusting for inflation. These cuts
cost the Nation billions of dollars each year in lost tax revenue and
have been enacted despite the IRS's crucial and growing responsibilities
to implement new mandates and enhance cybersecurity protections.
The IRS needs more resources, not fewer, to deter tax cheats, serve honest taxpayers, and protect taxpayer data. That
is why the President's FY 2017 Budget would increase IRS funding by
$530 million above the FY 2016 enacted level to protect the integrity of
the tax system, fairly enforce the tax code, and provide adequate
levels of taxpayer services. Unfortunately, H.R. 4885 would go in the
opposite direction, further reducing the resources available to the IRS
and undermining the fairness and integrity of the tax system in ways
that would increase burdens on taxpayers, including by increasing the
deficit.
If the President were presented with H.R. 4885, his senior advisors would recommend he veto the bill.
Source: Executive Office of the President, Office of Management and Budget
