Mike Levin: “Many have said they want the next Congress to work on tax reform. Any tax reform effort we undertake, however, needs to…”

“Many have said they want the next Congress to work on tax reform. Any tax reform effort we undertake, however, needs to address the grave warning recently provided by IRS Commissioner Charles O. Rossotti about the need for immediate steps to avert a breakdown in federal tax enforcement. Mr. Rossotti has just completed 5 years of work to restore confidence in the effectiveness and fairness of the IRS. He left the administration last week after submitting a report to the IRS Oversight Board summarizing his efforts and the current state of the IRS. His overall conclusion was that, while the IRS made significant progress over the last 5 years in revamping its procedures and improving interactions with average taxpayers, the IRS is 'losing the war' on stopping tax cheats. Mr. Rossotti wrote that while the size and the complexity of the Tax Code have continued to increase, IRS enforcement resources have continued to diminish. He described the IRS as 'outnumbered' and facing a huge and growing gap 'between the number of taxpayers whom the IRS knows are not filing, not reporting or not paying what they owe, and our capacity to require them to comply.'”