IRS to cut taxpayer services in response to budget cuts

WASHINGTON, Jan. 15 (UPI) -- The Internal Revenue Service announced in a memo to employees Tuesday they would be conducting fewer audits and slower to hand out some refunds this year.

The memo sent by IRS Commissioner John Koskinen cited budget cuts for the predicted shortfalls.

The memo said the budget, set at $10.9 billion for the 2015 fiscal year, the lowest since 2008 and when adjusted for inflation the lowest since 1998, will require deep cuts in taxpayer services.

The cuts include fewer audits, a hiring freeze, delayed tax returns, fewer staff to assist taxpayers with their questions and filings, fewer investments in IT designed to safeguard against taxpayer identity theft and a possible furlough of employees.

Koskinen said as a last resort, the agency will have to shut down for a few days following tax season.

"IRS employees are doing their best to handle the rising demand for their services, but they will simply not be able to keep up," said Colleen M. Kelley, president of the National Treasury Employees Union. "I have urged the IRS not to make any decisions on furlough days this early in the fiscal year and to work with us to find other alternatives."

Koskinen said the cuts could lead to $2 billion in lost tax revenue.