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Sequestration and the IRS

If there is no Congressional agreement on a budget for 2014, many government agencies will have to cut expenses by 3 to 8 percent. Does this mean that IRS employees will have furlough days (time off without pay) between now and April 15? Apparently not.

In a memo to IRS employees, IRS Acting Commissioner Steven Miller said that ‘furlough days off’ would begin this summer. “If sequestration occurs, we will continue to operate under a hiring freeze, reduce funding for grants and other expenditures, and cut costs in areas such as travel, training, facilities and supplies,” IRS Acting Commissioner Steven Miller wrote employees Thursday. “In addition, we will need to review contract spending to ensure only the most critical and mandatory requirements are fully funded.”

Miller’s announcement contradicts the statement that Treasury Department Deputy Secretary Neal Wolin told Congress on Feb. 7. He said that “the cuts to operating expenses and expected furloughs would prevent millions of taxpayers from getting answers from IRS call centers and taxpayer assistance centers and would delay IRS responses to taxpayer letters.” No one seems to know exactly how the legislated reduction in government expenses is going to be implemented.

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