Summary: GAO testified that the Internal Revenue Service's (IRS) budget request for fiscal year 1993 projects minimal growth in collection staffing and a decline in examination staffing from fiscal year 1990. This lack of growth in enforcement staffing comes at a time when enforcement statistics continue to show negative trends. For example, the accounts receivable inventory is still growing at a faster pace than delinquent tax collections, and audit coverage is projected to again fall below one percent. In addition, much of the anticipated productivity savings in the fiscal year 1993 budget, like those in the last budget, appear to have been based on unrealistic assumptions. The result is that programs are being cut to reflect "savings" that are not really there. Lastly, GAO believes that American taxpayers have a right to expect results from the considerable investment in Tax System Modernization. The biggest payback could come from major changes in the way IRS does business. GAO also discusses the resource levels for three specific IRS functions--taxpayer service, criminal investigations, and exempt organizations.
