IRS Shutdown Looms, Saving $29 million a Day

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IRS Shutdown

In the recent budget deal struck between Congress and President Barack Obama, the Internal Revenue Service (IRS) budget will be cut by $346 million to $10.9 billion — $1.5 billion less than the Obama administration asked for.

As the result of a budget cuts, the IRS is facing a temporary shutdown and furloughs said IRS Commissioner John Koskinen earlier this week.

The furloughs, which are forced unpaid days off for employees during an IRS closure, is under reluctant consideration to save money which Koskinen estimated at approximately
$29 million a day. Koskinen continued: “I view it as: Are we going to have to shut the place down? There is no way we can say right now that that won’t happen.”

The news comes a day after Koskinen put IRS employees on notice that the IRS would eliminate overtime and that a hiring freeze would be imposed on the agency – a tough situation to be in when IRS managers sit down to negotiate with the National Treasury Employees Union. Union member salaries and benefits make up about 75 percent of the IRS costs.

These cuts will have an even greater impact this coming year as the IRS prepares to implement Obamacare tax credits and penalties for the first time while instituting a one percent federal employee pay increase passed by Congress in the recent fiscal year.

“It’s not just the $350 million cut in the budget; it’s the fact that we have $250 million in new expenses for a government-wide pay raise… So we really have a $600 million hole this year,” he said.

Members of Congress justified the cuts by reminding detractors that the IRS paid out bonuses to IRS employees involved in the enforcement scandal against conservative organizations and Tea Party groups and the lavish conferences the IRS has hosted in recent years.

  • henrybowman

    Doesn’t the administration know that you gotta spend money to confiscate money?

    On the other hand, if this is another “Washington Monument Ploy,” it’s absolutely the stupidest one on record. “Shut down the IRS? Yeah, damn shame, pass the beer nuts.”

    • Brad Reynolds

      Hahahahaha “pass the beer nuts”
      Priceless… I’m thinking everyone with half a brain will rather enjoy this small bit of good news in this ever expanding black hole of bad news we get now a days… 🙂

    • Snoopy

      I’ll drink to that! All they have ever done as take, take, take!!
      Maybe NOW they will all have to go out and get REAL jobs!

  • grandmary42

    Didn’t they just give their employees a bonus?
    They should be shut down, better abolished!

    • Snoopy

      NOW U’r talkin’! Shut the whole mess down (an estimated savings of $29 million a day = OVER $10 trillion per year) and instigate a “FAIR” across the board tax on everything but food and medicine. Let “He who spends the most, PAY the most!” The $10 Trillion on salaries alone would pay off our debts in a couple of years… and THAT doesn’t count all the paperwork, rent and utilities on the buildings, parking spaces, OR the personal vehicles and gasoline, paid for by “We The People”. Sounding better with every breath I take!

  • Col. Grampaw

    Since 1974, the IRS shed about 15% of its employees, down to about 89,500 total, mostly in the office and field examiner, and collection positions. At the same time, total individual income tax returns filed has doubled, from 73 million to 145.4 million for TY 2011. As Congress made the tax laws more complex, it made refunds more generous, inviting millions of fraudulent low income returns.
    Approximately 24% (6.48 Million) of 27 million returns and paying out about 14 Billion dollars are determined to be fraudulent.
    Assuming an examination could be concluded in 4 hours (it can’t) and turned over to criminal investigators, it would take over 12,500 examiners working 2,080 hours with no training, sick or other non-direct time to examine just the fraudulent EIC claims, pre-supposing they were clearly marked as fraud in advance of the examination. That would not include any other types of return examinations, such as corporations, excise, estate, partnership, payroll or individual non-EIC returns.
    When I was hired in 1974, there were only about 3,000 office examiners world-wide (IRS Had overseas offices) and in Louisiana there were about 65 thru-out the state. When I retired, early 2007, the only 3 office examiners remaining in Louisiana were in New Orleans.
    Simply stated, Congress created a wealth re-distribution scheme thru the Earned Income and Child tax Credits which cannot be controlled and they do not want to stop.

  • frankenbiker

    End the IRS, create a national sales tax, save this country hundreds of billions in IRS paychecks, and administration cost, and to quote the dementocraps, “everyone pay’s their FAIR share”. As everyone who buys anything will be taxed. It’ll end the debt in a matter of decades, and we’d become a world power and solvent nation once again.

  • Norman

    Just bring in the FAIR Tax and do away with them all

    • henrybowman

      Yeah, that’ll do away with all that “tax free” money in your Roth IRA, too.

      • Norman

        don’t have any IRA my money is under my mattress

        • Lance troupe

          Where did you say you live? LOL!

  • RichardM73

    Well I got a letter from my state IRS office indicating that I owe them money and they will garnish my wages, place a lien on my property, etc. Wow, just in time for Christmas! What timing. I guess this is my Christmas present from my state IRS! When you have fraud and corruption at the highest levels of govt then as the ‘ol saying goes — sh*t rolls downhill.

    • Lance troupe

      Screw the IRS, thats what they have been doing to us for 70 plus years.

  • Gold Stars

    Too bad it is only a 600 Million dollar hole!

    It we could make it a bigger hole, maybe we could shove the entire agency into it!! LOL
    Get rid of the union, unions should not be allowed in any government agency!
    Get rid of the IRS! All we need is a simple flat tax. Same for everyone 10 percent. Government needs to live on that 10 percent!

    If we need more than 10 percent for government, then trim the government until it fits into the 10 percent!!!


    Koskinen sat in front of the investigating committee this summer and lied his a// off. He would rip off his own mother’s pin money.