Meanwhile, the IRS moves ahead with its tax debt privatization plan….

$11 million. The projected sweetheart payout to private debt collectors for bringing in only $46 million in tax debts this year.
White House fiscal 2008 budget proposal, February 2007

2.9 million. The number of taxpayer files the IRS plans to turn over to debt collectors under its privatization program. Many of these taxpayers—who have filed their return, acknowledged their debt, but don’t have the money to pay—are lower-income taxpayers, people for whom English is not their primary language, and seniors.
IRS data from its tax debt privatization program
Also, Everson House Ways & Means Committee testimony, March 20, 2007

Did You Know...

With a modest budget increase, the IRS could collect an additional $9.7 billion. See how it works

69,204. The number of consumer complaints last year to the Federal Trade Commission about the private sector debt collection industry—which once again generated the most complaints.
Federal Trade Commission

19.9 percent. The percentage of all consumer complaints to the FTC last year that involved third party debt collectors—up from 19.1 percent of all complaints the year before.
Federal Trade Commission

25 percent. How much of a bounty private debt collectors get to keep under the IRS private tax collection program.
IRS data from its tax debt privatization program

$1.4 billion. The amount of tax debts private companies say they can collect over 10 years under IRS contracts.
IRS data from its tax debt privatization program

$9 billion. The amount of additional tax debts IRS employees could collect in a single year with only a modest increase in resources.
Charles Rossotti estimate made in report to IRS Oversight Board

Five Dozen. The number of taxpayer complaints the IRS said have been generated by the tax debt privatization program in its initial phase since last fall.
Mark Everson testimony, March 2007

$2,680. The annual amount the IRS’s National Taxpayer Advocate describes as the ‘surcharge’ taxpayers who comply with their tax obligations pay in taxes to make up for those who don’t comply.
Nina Olson testimony before House Budget Committee, Feb. 16, 2007. P. 1

Nine million. This is how many people every year the Federal Trade Commission says are victims of identity theft—a real risk when personal data gets into the public domain.
Federal Trade Commission identity theft website

 Budget and Staffing Data

From 158 million to 177 million. The growth in the number of tax returns filed between 1996 and 2005.
TIGTA report: Trends in Compliance Activities through Fiscal Year 2006, March 2007

From 114,000 to 94,000. The decline in the number of IRS employees in that same period.
NTEU March 29, 2007 House testimony, quoting IRS annual reports and data

32 percent. The decline in that period, from 8,139 to 5,462, in the number of IRS Revenue Officers, who collect large delinquent accounts.
NTEU March 29, 2007 House testimony, quoting IRS annual reports and data

$
"Short-changing the IRS leads to
out-of-whack enforcement
. When the IRS doesn’t even ask for enough money to do its job effectively, the critical idea of tax fairness gets sharply skewed, as inadequate agency resources result in greater attention."


   
NTEU President Colleen M. Kelley

23 percent. The decline over that time span, from 16,078 to 12,355, in the number of IRS Revenue Agents, who perform audits.
NTEU March 29, 2007 House testimony, quoting IRS annual reports and data

Nearly 1,200. This is the anticipated “savings” in full-time positions that would occur as a result of the administration’s fiscal 2008 IRS budget proposal.
White House fiscal 2008 budget proposal, February 2007

1,147. This is the number of those 1,200 positions that would be in enforcement and taxpayer service programs.
White House fiscal 2008 budget proposal, February 2007

42 cents. How much it cost IRS employees in fiscal 2006 to collect $100 in tax revenue. That’s down from 46 cents per $100 the year before, and it is the third-lowest cost figure since 1982.
IRS data book for fiscal 2006

$11.095 billion. The White House’s proposed IRS budget for fiscal 2008—an amount $546 million less than the $11.641 billion recommended by the independent IRS Oversight Board, which has broad budgeting, strategic planning and other responsibilities regarding the IRS.
White House fiscal 2008 budget proposal, February 2007

Zero. The amount of money beyond the president’s budget request the IRS has told Congress it needs in fiscal 2008.
Everson testimony before House and Senate Budget Committees

92,814. The number of full-time IRS employees proposed in the administration budget for the coming fiscal year—a number reflecting 32 fewer employees than at the end of fiscal 2006.
White House fiscal 2008 budget proposal, February 2007

$345 billion. Known as the ‘tax gap,’ this is the difference between taxes owed and taxes paid. It keeps growing because the IRS doesn’t seek the resources it needs to close it.
IRS estimate, offered by Everson in congressional testimony

118 percent. This is how much the tax liability backlog has grown since 1995.
Everson testimony to House Budget Committee and Ways and Means Committee on March 20, 2007

1,885. The number of IRS positions that could be added each year with a 2 percent annual net increase in IRS funding over five years to rebuild the IRS workforce to pre-1998 levels.
NTEU estimate, offered in congressional testimony



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