Dems Question IRS Downsizing

House Democrats are challenging a recent move by the IRS to downsize its estate tax auditing department (More here and here). Rep. John Olver (D-MA) just threw his hat into the ring, too. From BNA (subscription required): Olver expressed "strong concern" despite IRS's assertions that the change is due to the declining number of returns as a result of a bigger exemption. The Massachusetts Democrat pointed out that estates of more than $2 million are still subject to the tax. "I am greatly concerned that this sudden and substantial personnel reduction will cripple the ability of the IRS to detect tax cheating among the wealthiest estates," Colvert said in an Aug. 1 letter to Commissioner of Internal Revenue Mark Everson. IRS has taken significant heat from Congress since it announced July 24 that it intends to offer voluntary retirements to 157 of the 343 existing estate tax attorneys who audit estate and gift tax returns. Olver asked Everson to delay the personnel reductions "until it can be definitively shown that the IRS will enhance and not weaken its current efforts" in the estate tax area." In fact, he said, "I believe that the IRS should increase, not decrease, its audit coverage in this area." On July 28, 25 other House Democrats sent a letter to IRS Commissioner Mark Everson questioning the decision. From BNA again: Reps. John Lewis (D-Ga.), ranking member of the Oversight Subcommittee, and Earl Pomeroy (D-N.D.), a senior panel member, said they fear IRS may not be devoting adequate resources to compliance in this area. Taking a more urgent tone, 23 House Democrats said in another letter to Everson that IRS should rethink the decision at once. "We have serious concerns about this significant shift in tax collection policy and request that you immediately delay this decision until Congress has adequate time to review your plan," said the lawmakers, led by Rep. Steven Rothman (D-N.J.) and including Ways and Means member Rep. Benjamin Cardin (D-Md.)..... "We cannot understand why you would want to eliminate auditors from a division that is not only the most productive, but also, according to your agency, where there is a growing need for audits," the Rothman group said. BNA: Olver Criticizes IRS Decision to Reduce Attorneys Working on Estate Tax Audits BNA: Decision to Reduce Estate Tax Auditors Not Political, Everson Insists at Hearing
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