Internal Revenue Commissioner Mark W. Everson called on Congress yesterday to boost the agency's funding by the full $500 million requested by President Bush, calling it a way to help shave the record federal budget deficit.
The agency collected $43.1 billion in tax revenue through enforcement activities, including individual audits, in the federal budget year that just ended Sept. 30, a 15 percent increase over the prior year, Everson told reporters at a news conference.
IRS enforcement led to $43.1 billion in collections on a $10.2 billion budget last fiscal year, Commissioner Mark Everson said.
(Ray Lustig -- The Washington Post)
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The IRS's enforcement revenue was thus about four times larger than its $10.2 billion budget, Everson said, urging Congress to increase the amount to $10.7 billion for the fiscal year that began Oct. 1.
"The IRS can do more, but it's important for Congress to support our efforts," Everson said, noting that the White House proposal for the agency "is not faring particularly well with Congress."
"I ask those involved to take another look and fully fund the president's request," he said.
Lawmakers working to craft numerous government funding bills appear unlikely to grant the Bush administration's full IRS funding request; both the House and Senate have separately approved smaller amounts. But the two chambers have not yet reconciled their differences and could change the numbers before a final agency budget is enacted.
"Investing in enforcement actually makes a contribution to deficit reduction," Everson said.
The IRS also is increasing its scrutiny of tax-exempt organizations, Everson said, including about 60 alleged to have been improperly involved in this year's political campaigns.
The agency received more than 100 complaints from individuals and members of Congress "from across the [political] spectrum" of alleged tax law violations by such groups, Everson said. A committee of IRS career professionals vetted the complaints and decided to pursue about 60, of which about a third involve religious organizations, he said.
IRS enforcement activities have climbed back gradually from the low levels reached after a series of congressional hearings in 1997 and 1998 aired allegations of overzealous and abusive agency collection efforts. Everson said he has no target audit rates in mind but believes the rates now are all "lower than where they should be."
