Treasury watchdogs challenge decision to close IRS assistance centers

They say the IRS' approach is based on the assumption that taxpayers who need personal services will easily get them electronically.

Models used by the IRS to determine the 68 tax assistance centers it has scheduled to be reviewed for closure might need more scrutiny, several witnesses told the Joint Committee on Taxation Thursday.

J. Russell George, the Treasury Department's inspector general for tax administration, and National Taxpayer Advocate Nina Olson were the most vocal critics of the way the centers were targeted.

Olson noted that the IRS' current approach to closing those centers is based on the assumption that taxpayers who need personal services will easily get them electronically.

But Olson said the agency "overestimates taxpayers' ability or willingness to conduct complete financial transactions in an electronic or self-service format."

George said better data is needed for reviewing the centers, which primarily are focused on rural areas.

IRS Commissioner Mark Everson said steps were taken to make sure the impact of proposed closings would be shared by rural and metropolitan areas. "We don't want to close more than half of the TACs in any individual state," he said.

Everson said the agency made sure the 35 largest metropolitan areas did not lose a significant number of centers.