Liaison meetings, congressional hearing dominate scene: TEI testifies on IRS budget and priorities; meets with Treasury, IRS, and LMSB; renews push for simplification.

• Position: Recent Activities

Heightened security concerns amidst preparations of the United States war with Iraq prompted cancellations or postponement of numerous meetings in Washington and around the country. For example, nearly 100 tax executives altered their plans to attend TEI's Midyear Conference owing to such concerns. Corporate travel restrictions, however, did not prevent Tax Executives Institute from working ambitious advocacy and liaison agendas as winter turned into spring. February brought liaison meetings with the Department of the Treasury's Office of Tax Policy and the IRS's Large and Mid-Size Business Division; March, a high-level meeting with IRS officials as well as a renewed push for tax simplification; and early April, a request that TEI testify at a congressional hearing on the IRS's budget and priorities.

Congressional Testimony on IRS Priorities

TEI's appearance before Congress on April 8 came at a hearing of the House Ways and Means Subcommittee on Oversight on the IRS filing season, the agency's budget for fiscal year 2004 (which begins in October), and other issues of tax administration.

Appearing on a panel with representatives of other tax organizations, TEI Executive Director Timothy McCormally began by stating that for enforcement efforts to succeed, the tax law must be clear. Thus, the Institute encouraged Congress and the Treasury Department to continue their efforts to simplify and clarify the law--statutorily and administratively. Mr. McCormally also stressed that an effective enforcement strategy depends upon a committed, well-trained, and stable workforce.

TEI next commended the IRS's development of several innovative procedures--such as Fast Track Settlement, Accelerated Issue Resolution, and Limited Issue Focused Examination--to improve the examination process and promote currency. Its testimony said the increased attention on "front-end" activities can reduce contentious audits and expensive litigation.

Turning to the IRS's budget for the coming year, TEI said that if the IRS is to continue its efforts to improve the agency's credibility and effectiveness, it must be assured its programs will be fully and consistently funded. Money and stability are also required, TEI said, for the agency to recruit, train, and retain qualified personnel.

Use of Private Collection Agencies and Other Proposals

One area that prompted questions from the Subcommittee was recent proposals by the Bush Administration and others to use private firms to...