Providing the IRS with adequate funding.

• Position: Tax Executives Institute

July 21, 2000

On July 21, 2000, TEI sent the following letter to the Honorable Dennis Hastert, Speaker of the U.S. House of Representatives. Copies of TEI's letter, which was signed by the Institute's President, Charles W. Shewbridge, III of the Atlanta Chapter, were sent to members of the Republican and Democratic Leadership.

Tax Executives Institute urges the House of Representatives to restore full funding to the Internal Revenue Service's fiscal year 2001 appropriations. The House Appropriations Subcommittee on Treasury, Postal Service, and General Government recently voted that the IRS be funded at $466 million less than requested by the Administration. TEI submits that the additional funds are sorely needed to continue the IRS's modernization by investing in information systems and technology.

As the preeminent association of business tax executives, Tax Executives Institute knows how critical it is to invest in and plan for the future. Two years ago, Congress took the decisive step of mandating an extensive restructuring of the IRS. This change does not come without cost. It is now time to appropriate the funds necessary to fulfill the promises of the IRS Restructuring and Reform Act.

TEI's 5,200 members are accountants, attorneys, and other business professionals who work for the largest 2,800 companies in the United States, Canada, and Europe; they are responsible for conducting the tax affairs of their companies and ensuring their compliance with the tax laws. TEI is dedicated to the development and effective implementation of sound tax policy, to promoting the uniform and equitable enforcement of the tax laws, and to reducing the cost and burden of administration and compliance to the benefit of taxpayers and government alike. The Institute is committed to maintaining a system that works -- one that builds upon the principle of voluntary compliance and is consistent with sound tax policy, one that taxpayers can comply with, and one in which the IRS can effectively perform its audit function without unduly burdening taxpayers.

Equally important, the companies represented by TEI's membership know that to be successful, they must plan ahead and ensure that adequate resources are devoted to employee training, customer service, and other core functions. As a group, they applauded Congress's decision to manage the IRS more like a business.

If the leaders of the IRS are to rebuild the agency's credibility and effectiveness, the agency...