14 February 2018 Kautter asked about IRS funding, tax law implementation On February 14, 2018, Senate Finance Committee members raised questions about implementation of the "Tax Cuts and Jobs Act" and the Administration's IRS budget request during a hearing with Assistant Treasury Secretary for Tax Policy and Acting IRS Commissioner David Kautter. In his testimony, Kautter noted that in addition to the base appropriations request of $11.135 billion, the FY 2019 Budget proposes a $362 million program integrity cap adjustment to fund new and continuing investments in expanding and improving the effectiveness and efficiency of the IRS's overall tax enforcement program. In an opening statement, Chairman Orrin Hatch (R-UT) said the Administration's proposal for additional cuts to IRS funding is a mistake. "While I've had quite a bit to say over the years about the allocation of resources at the IRS, now, directly after passage of a major overhaul of the tax system, is not a great time to further reduce the taxpayer services budget of the agency that will do most of the work in implementing the updated tax code," he said. Ranking Member Ron Wyden (D-OR) expressed similar sentiments: "Less than two months ago, Republicans passed legislation making ten trillion dollars in tax changes virtually on the fly — the biggest tax overhaul in three decades, requiring a web of complicated rule changes. Now they're giving short shrift to the IRS, which is the agency that actually has to implement those changes and provide service to American families and businesses based on the new rules." Senator Wyden asked when Treasury/IRS would issue guidance on the pass-through deduction under the TCJA and whether there will be specific guidance for small businesses. Kautter said guidance on the new pass-through rules is a top priority and will be released as soon as possible, though no date has been set. There will be a focus on small businesses, he said. Responding to Senator Rob Portman's (R-OH) question about whether the agency is due for an overhaul, Kautter said he thinks it is time to take a look at how the IRS operates given that it has been 20 years since the IRS Restructuring and Reform Act of 1998, and there isn't a private business remaining that hasn't been revamped in the past 20 years. In response to Senator Claire McCaskill's (D-MO) questions about IRS customer service, Kautter said phone service could be improved, such as through estimated wait times and a callback feature. Senator Mark Warner (D-VA) said the Budget's proposed cuts to retirement benefits for Federal employees would not be helpful to the IRS in recruiting and retaining employees, who typically earn less than they would in the private sector.
Document ID: 2018-0328 | |||||
