Last May, we observed in this space that the Hawaii Department of聽Taxation was having a rough time, able to answer less than half of the phone calls聽it received. It turns out, however, that the IRS has had a much rougher time, and聽Congress, exhibiting unparalleled shortsightedness, is poised to hobble it even further.

According to the National Taxpayer Advocate鈥檚 midyear report, during the 2015聽filing season the IRS answered only 37 percent of taxpayer calls, down from 71 percent in the 2014聽filing season. The hold time for taxpayers who got through averaged 23 minutes, as聽opposed to 14 minutes last year.

The number of times the IRS system simply hung up聽on a taxpayer on hold was 544,000 in 2014 but went up to 8.8 million this past filing聽season.

The IRS hangs up on callers who are waiting on hold a lot more than it used to.

DonkeyHotey/flickr.com

The IRS also maintains a Practitioner 鈥淧riority鈥 Service line for tax聽professionals who are trying to assist taxpayers. Those with 鈥減riority鈥 weren鈥檛 much聽better off, as the answer rate was 45 percent, and the average wait time for the practitioners聽getting through was 45 minutes.

Part of the problem was this season was the first in which the IRS was collecting聽Obamacare penalties for taxpayers without health insurance, and giving premium tax聽credits for certain taxpayers who bought it. As with any new laws, taxpayers had more聽questions and needed more help. But the IRS鈥檚 funding was down about 17 percent on an聽inflation-adjusted basis as compared with fiscal 2010, and the House Appropriations聽Committee鈥檚 Financial Services and General Government Subcommittee voted June 11聽to slash the IRS鈥檚 budget by another $838 million, or 7.7 percent.

鈥淭he tax system is breaking down, and these funding cuts mandated by聽Congress are a big part of the problem.鈥 鈥 Marilyn Niwao, Maui CPA/attorney who heads National Society of Accountants

The National Society of Accountants, a national organization of tax practitioners聽that is currently headed by Maui CPA/attorney Marilyn Niwao, is up in arms over these聽developments.

鈥淭he tax system is breaking down, and these funding cuts mandated by聽Congress are a big part of the problem,鈥 said Niwao. 鈥淚RS customer service is at an all-time聽low, and tax practitioners cannot get timely responses from the IRS for questions聽we pose on behalf of our clients because the IRS cannot afford the staff it needs to聽answer the phones.鈥

Although there is a federal Taxpayer Bill of Rights, 鈥渢hese so-called聽鈥榬ights鈥 are meaningless if a taxpayer鈥檚 representative cannot get the information聽needed from the IRS because Congress has not appropriated sufficient funds to allow聽the agency to function properly,鈥 Niwao said.

Last-minute tax law changes don鈥檛 help either. 鈥淟ast year, a tax bill was enacted聽on Dec. 19, giving no one 鈥 not taxpayers, tax return preparers or the IRS 鈥 sufficient time to learn about the changes in the tax law, or even get tax forms out in聽time for the beginning of the tax filing season,鈥 Niwao added.

Although it might seem politically appropriate to punish the IRS in the pocketbook聽for its handling of such things as Tea Party tax exemption applications, crippling the聽agency that needs to take in the revenue needed to run government is a sure path to聽disaster.

Short-sighted budget cuts will cost the government far more in lost revenue聽not only because it will have fewer resources to find the cheaters, but it will also be聽unable to provide essential help to the vast majority of taxpayers who are trying to be聽honest but who can and will make mistakes if they don鈥檛 know and can鈥檛 find the聽information they need to comply.

We need to treat our taxing agencies 鈥 including the聽IRS and the Hawaii Department of Taxation 鈥 like the essential units of government they are,聽and make sure they get adequate support for the job we are relying on them to do.

Community Voices aims to encourage broad discussion on many topics of community interest. It鈥檚 kind of a cross between Letters to the Editor and op-eds. This is your space to talk about important issues or interesting people who are making a difference in our world. Column lengths should be no more than 800 words and we need a current photo of the author and a bio. We welcome video commentary and other multimedia formats. Send to news@civilbeat.org.聽The opinions and information expressed in Community Voices are solely those of the authors and not Civil Beat.

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