The IRS is making progress with employee management but faces continued challenges having lost some 10,000 full-time employees in the last two years in the face of significant tax code changes, the Treasury Inspector General for Tax Administration has said.
It said many of the agency’s experienced leaders and employees will be eligible to retire in the next five years as well and that despite progress – for example, the IRS developed an agency-wide recruitment strategy that should place the agency in a better position to identify and attract qualified candidates – continued focus by IRS executive management on human capital is important.
The Patient Protection and Affordable Care Act means an increased workload, and the IRS needs to make improvements to stop billions of dollars in fraudulent or improper tax refunds resulting from identity theft and erroneous claims for tax credits, TIGTA noted.
