When will it end? At least weekly the IRS is being publically exposed for some boondoggle or another. How many of us had to prod, cajole, and reassure clients that efile was safer than mail? How many times a tax season do we give the speech to wary clients that what goes to the IRS stays with the IRS, that no other agency in the federal gov't protects their privacy so securely. Well, now we look like fools.
On a larger level, I am horrified at how one of the best-run agencies in the entire federal bureacuracy, with the best-trained employees, suddenly fell into such disrepute--targeting people for audits for political reasons (allegedly, with several officials pleading the Fifth), taking expensive junkets, and now releasing taxpayers' sensitive data. I know a lot of IRS agents, and find all of them to be dedicated, learned employees who are committed to upholding the tax code and respecting the taxpayers who pay them. Back when the Nixon administration imposed price controls, they borrowed heavily from the IRS labor pool because they were capable and well-trained in learning and upholding the law. I often defend the agency to my clients, explaining that it is not responsible for the mess of the tax code, it can only do what Congress tells it to do, etc. And now this.
I think the fault has two levels. One is the practice of Congress to write social policies into the tax code. The IRS isn't just about collecting federal revenues anymore, but administering the nation's largest antipoverty program (EITC), stimulating housing, getting polluting cars off the road, encouraging business investment, helping people go to college, jointly administering labor and pension law, being burdened with a big chunk of Obamacare, etc. etc. These are political actions more than revenue-collection ones, and I guess the agency eventually had to succomb to politics in its operations. Second, Congress has greatly reduced the agency's budget while expanding its responsibilities. The Taxpayer Advocate herself recently detailed how reduced training funds have greatly impacted the effectiveness of her office.
It is time to let the IRS return to its original purpose of collecting revenues, not administering social policies. Their staff should focus on Title 26, nothing else. They've been really good at it in the past and I believe can be so again, There are lots of federal agencies that focus on the poor, education, housing, health care, etc., so let these others do that work. Then the IRS can rebuild its former image as a respected (albeit hated) agency that does what it does well.