IRS Head Says Budget Cuts Could Force 2-Day Agency Shutdown

BY STEPHEN OHLEMACHER
Associated Press

WASHINGTON — The head of the IRS is telling employees that budget cuts could force the agency to shut down for two days later this year.

In an email to workers, IRS Commissioner John Koskinen said Tuesday the agency will reduce taxpayer services and conduct fewer audits this year. He previously announced that some tax refunds could be delayed.

Koskinen says the agency’s $10.9 billion budget is the lowest level of funding since 2008. Congress cut the IRS budget by $346 million for the budget year that ends in September.

Koskinen said the agency will extend a partial hiring freeze through the end of the budget year. He said fewer enforcement agents will cost the federal government at least $2 billion in lost tax revenue.