Obama Threatens to Veto Bill 'Compounding' IRS Budget Cuts

Administration also expresses strong opposition to measures limiting IRS bonuses and prohibiting the agency from hiring tax delinquents or rehiring misbehaving employees.

President Obama’s team on Tuesday expressed strong opposition to four Republican bills aimed at revamping the Internal Revenue Service, threatening to veto one of them should it reach the president’s desk.

The bills, which the full House is expected to take up Wednesday or Thursday, would curb executive bonuses pending measurable agency customer service improvements,  ban the IRS from hiring employees with taxes delinquencies,  prohibit the agency from rehiring prior employees who were terminated due to misconduct, and repeal the IRS’ legal authority to spend user fees to offset the cost of providing services to taxpayers. The House Ways and Means Committee cleared them last week.

In a Statement of Administration Policy, the Office of Management and Budget called the  bonus curb (H.R. 4890) unnecessary.  “The IRS has already developed and has begun to execute a strategy to improve taxpayer services,” the statement said of the bill, introduced by Reps. Patrick Meehan, R-Pa., and Pete Sessions, R-Texas. “The real constraint on the IRS' ability to serve taxpayers effectively is severe underfunding, including for taxpayer services.”

On the No Hires for the Delinquent IRS Act (H.R. 1206), introduced by Rep. David Rouzer, R-N.C., the White House said, “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 Obama team called the bill “unworkable in operation, as ‘seriously delinquent’ debts could be as low as $1 and tax liens are recorded on a case-by-case basis.”

The Ensuring Integrity in the IRS Workforce Act (H.R. 3724), sponsored by Kristi Noem, R-S.D., “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 White House said. “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.”

The IRS Oversight While Eliminating Spending Act (H.R. 4885), introduced by Rep. Jason Smith, R-Mo., would curb the ability of the IRS has enjoyed since 1995 to fund programs through use of fees. In the view of the White House, the bill 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.”

Repeating the administration’s position that the IRS needs more money, not less, the veto threat said this bill would undermine “the fairness and integrity of the tax system in ways that would increase burdens on taxpayers, including by increasing the deficit.”

The Senate, meanwhile, is also at work on bills to change the IRS in the aftermath of the recent disputes over alleged politically biased treatment of taxpayers by IRS officials. Sen. Chuck Grassley, R-Iowa., on Monday announced that the Finance Committee this week would consider bills to extend the time limit on taxpayers seeking to contest a levy; hold harmless those individuals subjected to an improper levy on retirement plans; codify the internal IRS record-retention policies; and make electronic filing mandatory for all tax-exempt organizations rather than just the largest and smallest.  

Grassley, along with Sen. John Thune, R-S.D., also is pressing a bill to study problems at the IRS relating to “offers in compromise” when negotiating payments from taxpayers who have run into financial distress.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.