Enforcement revenue collected by the IRS declined in fiscal 2012 by 9 percent from $55.2 billion to $50.2 billion, and is down 13 percent from fiscal 2010, correlating with a 14 percent reduction in enforcement personnel, the Treasury Inspector General for Tax Administration has said.
"The IRS is facing many new challenges while operating with fewer resources and employees," said the IG, J. Russell George, adding, "Several indicators showed the effect of this, including a decrease in enforcement revenue and a continued increase in accounts receivable."
The agency has been faced with having to administer new tax provisions (including many under the Affordable Care Act) with decreasing resources, and while operating under a continuing resolution that is a 2.7 reduction since fiscal 2010, TIGTA noted.
It said the IRS has lost about 8,000 full time IRS employees, 5,000 of those being front-line enforcement personnel, since fiscal 2010, and noted that over one third of current executives and about one fifth of nonexecutive managers are retirement eligible. While the IG did not make any recommendations, it maintains a clear link exists between a decline in enforcement resources and collections.
