Introduction
The Internal Revenue Service (IRS) is the government agency responsible for collecting taxes in the United States. Despite the important function it performs, the IRS has been the subject of harsh criticism from taxpayers, politicians, and the media for many years. These criticisms range from concerns about unethical behavior to accusations of incompetence and outright corruption. In this article, we will explore some of the key reasons for the harsh criticism of the IRS, and assess whether these concerns are justified.
History of the IRS
The IRS has been around in some form since the Civil War, when Congress passed the Revenue Act of 1862 to fund the Union army. However, it wasn’t until the 20th century that the agency began to take on its current form. In 1913, Congress passed the 16th Amendment to the Constitution, which gave the government the power to collect income taxes. The same year, Congress created the Bureau of Internal Revenue, which would later become the IRS.
Early on, the IRS was primarily concerned with enforcing the tax code, and not much else. However, in the wake of the Great Depression, the agency took on additional responsibilities, including administering social welfare programs like Social Security and enforcing labor laws. By the end of World War II, the IRS had become a massive bureaucracy, employing tens of thousands of people and collecting billions of dollars in taxes every year.
The Taxpayer Bill of Rights
Despite its important role in American life, the IRS has long been accused of being an unaccountable and arbitrary agency. To address these concerns, Congress passed the Taxpayer Bill of Rights in 1988. This law gave taxpayers more rights and protections when dealing with the IRS, and required the agency to be more transparent in its dealings with the public. Among the rights guaranteed by the Taxpayer Bill of Rights are:
-The right to privacy and confidentiality
-The right to be informed in clear language
-The right to challenge the IRS’s position and be heard
-The right to appeal an IRS decision
-The right to retain representation
Despite the passage of the Taxpayer Bill of Rights, however, many taxpayers and watchdog groups continue to be critical of the IRS’s behavior.
Criticism of the IRS
The IRS has been the subject of a great deal of criticism over the years. Some of the most common areas of concern include:
–Abuse of power: Perhaps the most common criticism of the IRS is that it abuses its power by targeting individuals or groups for political reasons. For example, in 2013, the IRS was accused of targeting conservative groups for extra scrutiny when they applied for tax-exempt status. While the IRS denied that this was politically motivated, the scandal led to a great deal of public outcry and calls for reform.
–Incompetence: Another common complaint about the IRS is that it is simply not very good at its job. There have been numerous reports of lost or mishandled tax returns, incorrect information being given to taxpayers, and massive backlogs in processing refunds and other services. In some cases, taxpayers have been left waiting for months or even years to resolve issues with the IRS.
–Corruption: Finally, the IRS has been accused of outright corruption by some critics. For example, there have been reports of IRS agents taking bribes or otherwise abusing their power for personal gain.
IRS Reform
Despite the many criticisms of the IRS, there have been few major reforms to the agency in recent years. One exception is the Affordable Care Act, which gave the IRS a major new role in enforcing the individual mandate. However, this law has been controversial, with many critics arguing that the IRS is not equipped to handle its new responsibilities.
Other proposals for IRS reform have been more modest. For example, some have called for greater transparency and accountability within the agency, while others have suggested streamlining the tax code to make it easier for taxpayers to understand and comply with.
Conclusion
The IRS plays an incredibly important role in American life, collecting taxes that fund critical government programs and services. However, the agency has been the subject of harsh criticism for many years, with concerns ranging from abuse of power to incompetence and corruption. While some of these concerns may be justified, it is important to remember that the IRS is made up of thousands of dedicated public servants who work hard every day to perform an important and often thankless job. Ultimately, it will be up to policymakers and the American public to decide whether the IRS requires major reforms to address the concerns that have been raised.
The Internal Revenue Service and its components have commonly been the source of criticism for their abusive practices, lack of organization, and inept handling of various issues. Granted with 150 million tax returns a year the IRS will inevitably fall short in terms of organization or maximum efficiency, but the criticisms associated with the agency extend to its inner workings. To document all the established criticisms of the organization responsible for levying federal taxes, we will subdivide the gripes into extensive complaints.
Criticisms for managing and accounting practices
The General Accounting Office (GAO) of the United States is responsible for overseeing and evaluating the book and record keeping procedures of the Internal Revenue Service. Over the past 8 years the Internal Revenue Service has failed the audit administered by the GAO.
The GAO claimed that the Internal Revenue Service has “pervasive weaknesses in the design and operation of their financial management systems, accounting procedures, documentation, record keeping and internal controls, including security controls, which have prevented the Internal Revenue Service from reliably reporting on the results of its administrative activities.”
The Internal Revenue Service possesses inadequate financial reporting procedures which result in an inability to prepare the several reliable principal financial statements.
IRS information is routinely misguided due to improper bookkeeping systems which are necessary for managing in unpaid assessments.
Much of the $300 billion in unpaid taxes results from inefficient or inept bookkeeping
There is a lack of preventive controls found in the Internal Revenue Service, causing the distribution of millions of dollars in fraudulent tax refunds.
The Internal Revenue Service routinely fails to reconcile deficiencies with the Treasury Fund as it relates to their balances.
The Internal Revenue Service fails safeguarding or reporting its property and equipment.
The computer system which holds all pertinent IRS information lacks property security, allowing unauthorized users to access, alter, or abuse IRS programs, taxpayer information, and critical data.
The Internal Revenue Service does not properly organize tax receipts and tax data which increase the taxpayer’s risk of illegal disclosure of sensitive IRS information.
The budget of the Internal Revenue Service is not properly reported, accounted, or controlled.
Allegations of Abuse
The IRS Criminal Investigation Division (responsible for locating tax evaders and collecting unpaid taxes) has been accused of abusive behavior on multiple occasions.
As a result of the Internal Revenue Services power when seeking a tax evader multiple reports and cases have been filed which revolve around smear campaigns and the improper seizure of personal property.
IRS attorneys have been suspended or disbarred from practice for corruption.
The Internal Revenue Service fails to discipline lawyers or agents who participate in dishonorable practices.
Criticisms on Working for the Internal Revenue Service
For new workers the IRS information is simply too complicated and verbose to learn. As a result of this, there is very high turnover within the first year of employment.
During the training period trainees are expected to obtain massive amounts of IRS information while being paid next to nothing.
There is no room for creativity. The Internal Revenue Service is not open to new methods or ideas that would further streamline the levying process.
Among government agencies, the IRS is known for having the worst resources.
The office is micromanaged and due to size, individuality is commonly stripped.
