"The IRS must work harder and smarter," the board said.
The report was scheduled to be submitted Wednesday afternoon to the House Treasury-Transportation Appropriations Subcommittee, when newly installed IRS Commissioner Mark Everson made his first appearance before a committee as commissioner.
While the report says understaffing and underfunding is partly to blame-the workload of the IRS has increased 16 percent over the past decade while the number of its employees dropped by 16 percent-the agency also is not moving as quickly to reform itself as it could.
The report called for a 2 percent increase in staffing at the IRS in each of the next five years. The board also recommended that the IRS, Congress and the Bush administration work together to:
- Crack down on noncompliance with tax laws, which has risen in the past decade as IRS resources have declined.
- Boost customer service efforts.
- Make a commitment to modernize IRS computer systems.
- Develop a comprehensive human resources initiative.
- Reach a consensus on long-term customer service and compliance goals.
- Simplify the tax code.