A Taxpayer-Friendly IRS?

Government panel recommends 200 service improvements

WASHINGTON (AllPolitics, March 18) -- Imagine a day when tax forms are simpler and Internal Revenue Service workers are rewarded on how quickly and fairly they resolve your problems. Those were among 200 customer service recommendations unveiled Wednesday by Vice President Al Gore in a report called "Reinventing Service at the IRS."

In this story:

• A change in how IRS workers are evaluated
• Other proposals
• Some changes already have been made
• Related stories and sites

Gore, who highlighted the report at a White House event, called the recommendations "the next critical step" in improving the IRS and rediscovering the final word in its name: service.

Gore noted that computer and telephone filings are up sharply this year, and traffic on the IRS' Web site has tripled.

"This is a revolution in progress and it's picking up speed," Gore said. The goal, the vice president said, is to create a new culture of customer service at the tax agency.

The 92-page report, prepared as part of Gore's "reinventing government" campaign, is the result of a 10-month study. It says that many of the improvements can be made within the IRS' existing budget while others will require new money.

The authors picked the brains of front-line IRS workers and taxpayers on how to improve service at one of the government's least popular agencies. One finding was familiar: Taxpayers want "minimum contact with the IRS."

To that end, the IRS is planning to drop unnecessary notices by the end of 1998, meaning the elimination of 45 million pieces of IRS mail per year.

A change in how IRS workers are evaluated

One of the most far-reaching proposals would change how IRS workers are evaluated -- to reward them for good customer service instead of by the numbers of cases processed, which can lead to abuse of taxpayers.

"IRS performance measures are production driven, overvalue enforcement, focus on isolated steps ... and may inadvertently encourage unfair treatment of taxpayers," the report says.

It notes the IRS banned use of enforcement statistics, such as dollars collected, to gauge performance of IRS district offices. Instead, the report recommends a new evaluation tool that rates employees on customer service, employee satisfaction and "business results."

• Simplifying IRS forms, notices and letters.
• Giving IRS field executives authority to issue one-day "emergency tax refunds" in hardship cases.
• New technology to ensure telephone calls are answered faster and more accurately.
• Improving face-to-face service.
• Helping small businesses.
• Expanding electronic filing.
• Introducing new payment options.

Some changes already have been made

IRS customer service

"We must have an IRS that is on the taxpayers' side, providing the help they need," the report says. "We know we have a long way to go. But the good news is that the reform of the IRS has begun."

Much of the report's substance was disclosed when President Bill Clinton announced a series of customer service initiatives in October, including creation of 33 local "citizen advocacy boards" that will boost the powers of the agency's taxpayer advocate's office.

Work on the report was under way when the Senate Finance Committee held riveting hearings last fall about IRS abuses of taxpayer rights. Struggling to improve its image, the IRS has already made changes, including:

• A new commissioner, Charles Rossotti.
• Phone service hours have doubled.
• Walk-in service on Saturdays at IRS offices.

But another report on the IRS, this one from the General Accounting Office, warns that the tax collection agency needs to figure out how to improve the quality of customer assistance, not just increase its availability.

And, there's another problem. Tax preparation became more complicated this year. What's really needed is "to reform the entire system," says tax preparer John Berger. (170K wav sound)

That job is up to Congress. The Senate is expected to follow the House this month in taking up legislation that will revamp the IRS. But as for simplifying the tax code, don't hold your breath.

CNN's Kyoko Altman and Kathleen Koch and The Associated Press contributed to this report.

Wednesday March 18, 1998

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• Jerry Brown Leaves Democratic Party
• House Rejects Attempt To Remove U.S. Troops From Bosnia
• Jones Lawyers: Clinton's Testimony Not Credible
• Former Espy Aide Gets 27 Months In Prison
• Democratic Leader Criticizes GOP Schools Bill
• First 'Air Force One' To Be Retired
• Ex-Gov. Tucker Goes Before Grand Jury
• A Taxpayer-Friendly IRS?
• Fitzgerald To Face Moseley-Braun For Illinois Senate Seat

Transcripts:
• Vice President Al Gore Speaking On IRS Changes