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Friday, October 27, 2006
IRS Commish Losing Mind?
This is just ridiculous (emph. mine).
The commissioner of internal revenue has ordered his agency to delay collecting back taxes from Hurricane Katrina victims until after the Nov. 7 elections and the holiday season, saying he did so in part to avoid negative publicity.
The commissioner, Mark W. Everson, who has close ties to the White House, said in an interview that postponing collections until after the midterm elections, along with postponing notices to people who failed to file tax returns, was a routine effort to avoid casting the Internal Revenue Service in a bad light.
“We are very sensitive to political perceptions,” Mr. Everson said Wednesday, adding that he regularly discussed with his senior staff members when to take actions and make announcements in light of whether they would annoy a powerful member of Congress or get lost in the flow of news.
It's politics before policy, as usual. Can't say I'm shocked, but Everson's casual tone is pretty unbelievable. Does he really think that it's no big thing to politicize tax collection AND admit doing so in public?
So, how long will Congress keep putting up with all the nonsense at the IRS? Not very long, perhaps, at least in terms of the tax gap. From BNA ($):
Congressional action on the tax gap may be among the first orders of tax business following the midterm elections, especially if either or both chambers flip to Democratic control, aides, lobbyists, and experts have told BNA.
The issue has gained momentum following initial calls by Senate Democrats Max Baucus (Mont.), Kent Conrad (N.D.), and others for review of the billions in unpaid taxes each year. Those requests have caught the attention of other lawmakers and evolved into proposals for addressing the problem.
Baucus raised the issue's profile by blocking a key Bush administration Treasury Department nomination until the department delivers what he deems to be acceptable options for dealing with the tax gap. The gap currently stands at about $345 billion.
Posted by Matt Lewis
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