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GAO-01-698R 1 (2001-05-01)

handle is hein.gao/gaocrptanjx0001 and id is 1 raw text is: 



  SGAO

        Accountability * Integrity * Reliability
United States General Accounting Office
Washington, DC 20548


          May 1, 2001

          The Honorable Amo Houghton
          Chairman, Subcommittee on Oversight
          Committee on Ways and Means
          House of Representatives

          Subject: Fiscal Year 2002 Budget Request for the Internal Revenue Service

          Dear Mr. Chairman:

          In response to a request for information on the Internal Revenue Service's (IRS) budget for
          fiscal year 2002, this letter addresses the following topics: (1) the administration's fiscal year
          2002 budget request for IRS, including a comparison to a separate budget request submitted
          by the IRS Oversight Board; (2) the Staffing Tax Administration for Balance and Equity
          (STABLE) initiative, which is intended to enhance IRS' customer service and compliance
          efforts; (3) opportunities for improving IRS' performance by increasing staff productivity; and
          (4) business systems modernization. Information in this letter is based on our review of the
          congressional justification submitted by IRS in support of the administration's budget
          request; IRS' annual performance plan for fiscal year 2002; a document prepared by the
          Oversight Board, entitled The IRSBudget, Fiscal Year 2002, a STABLE staffing plan prepared
          by IRS; and other data we obtained from IRS.

          In summary, the administration is requesting about $9.4 billion for IRS for fiscal year 2002.
          The Oversight Board is asking for about $300 million more. The Board's request exceeds the
          administration's in three broad areas: (1) business systems modernization, (2) improvement
          projects, and (3) operating costs. Our review of the administration's and Board's budget
          requests for IRS identified several questions related to (1) differences between the two
          requests, (2) IRS' hiring plans for STABLE, (3) the productivity of IRS staff, and (4) business
          systems modernization that the subcommittee may wish to raise to IRS and/or the Board.
          Those questions are set out at the end of each subsection of this letter.
          We sent a draft of this letter to the Internal Revenue Service and the Oversight Board for their
          review. They generally agreed with the factual data presented herein.

          Fiscal Year 2002 Budget Requests for IRS

          For fiscal year 2002, Congress has before it two separate budget requests for IRS-the
          traditional request prepared by the administration and, for the first time, a separate request
          prepared by the IRS Oversight Board. There are some significant differences between the two
          requests.

          The administration's request includes about $9.4 billion and 101,352 full-time equivalent
          (FTE) staff years for IRS. As shown in table 1, that request represents a 6.6-percent increase


GAO-01-698R IRS' FY 2002 Budget


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