WASHINGTON (AP) – The IRS is cutting taxpayer services just as President Barack Obama’s health law is making filing a tax return more complicated.
The agency blames budget cuts enacted by Congress. An IRS watchdog says service problems at the tax agency will make complying with the law harder for well-intentioned taxpayers.
“Without adequate support, many taxpayers will be frustrated, some will make potentially costly mistakes, others will incur higher compliance costs when forced to seek information and assistance from tax professionals,” said Nina E. Olson, the National Taxpayer Advocate, an independent office within the IRS.
“Still others,” Olson said, “will simply give up and not file.”
Olson released her annual report to Congress Wednesday, less than a week before the start of tax filing season on Tuesday.