NEW YORK — Filing a federal tax return is about to get more complicated for millions of families because of President Barack Obama’s health law. But they shouldn’t expect much help from the Internal Revenue Service.
Got a question for the IRS? Good luck reaching someone by phone. The tax agency says only half of the 100 million people expected to call this year will be able to reach a person.
Callers who do get through may have to wait on hold for 30 minutes or more to talk to someone who will answer only the simplest questions.
“Taxpayers who need help are not getting it, and tax compliance is likely to suffer over the longer term if these problems are not quickly and decisively addressed,” said a report Wednesday by agency watchdog Nina E. Olson.
IRS Commissioner John Koskinen says budget cuts are forcing the agency to reduce taxpayer services and other functions. The number of audits will decline, technology upgrades will be delayed and the agency might be forced to shut down and furlough workers for two days this year, Koskinen said.
The IRS will no longer help low-income taxpayers fill out their returns, and tax refunds could be delayed for people who file paper returns.
Congress cut the IRS by $346 million for the budget year that ends Sept. 30. Koskinen says the agency’s $10.9 billion budget is its lowest since 2008.
Republicans in Congress adamantly oppose Obama’s health law, so some have been working to starve the IRS of funds just as its role in implementing the law ramps up.
It won’t work, Koskinen said. The agency, he said, is required by law to help implement the health program. “The only places we have discretion are in information technology, tax enforcement, customer service.”
Service problems at the IRS also will make it harder for well-intentioned taxpayers to comply with the law, said Olson, who is the National Taxpayer Advocate, an independent office within the IRS.
“Without adequate support, many taxpayers will be frustrated. Some will make potentially costly mistakes,” she said.
“Still others,” Olson said, “will simply give up and not file.”
