House votes to ban IRS bonuses until customer service improves

The House on Thursday passed a Republican-led bill that would put a temporary hold on bonuses for IRS workers until it fixes the poor customer service that has plagued thousands of taxpayers.

The bill, sponsored by Rep. Patrick Meehan, R-Pa., would halt bonuses for IRS employees until the Treasury Department, which oversees the IRS, develops “a comprehensive consumer service strategy.”

Meehan said the average wait time for callers to the IRS seeking help at tax time has risen from about 19 minutes to 34 minutes in recent years. Overall, the IRS only responds to about 30 percent of callers, many of whom receive a “courtesy disconnect,” from the agency, he said.

“That just exemplifies the level of frustration, so what do we do about it?” Meehan said.

“You can’t make this stuff up,” said House Majority Leader Kevin McCarthy, R-Calif. “The IRS failed to answer eight million calls last year, but handed out $6 million bonuses to themselves.”

The House easily passed the measure in a 260-158 vote that saw about 20 Democrats vote with Republicans.

Moments after that bill passed, the House approved another bill that would block the agency from rehiring employees fired for misconduct. That bill focused on a Treasury Inspector General report that found the IRS has rehired many employees that had been fired.

“The IRS needs integrity, and we were here to bring it today,” said the sponsor of that bill, Rep. Kristi Noem, R-S.D.

Noem noted that the agency is currently employing 140 previously fired individuals.

That bill won the support of every Republican and most Democrats, and passed 345-78.

The bills were among four measures the Republican-led House passed this week, mostly along party lines, in an effort to rein in the IRS and make changes to issues that have long frustrated the public, including long wait times or nonexistent phone help.

Federal taxes were due on Monday.

On Wednesday, the House passed a bill that would block the IRS from hiring any new employees until every agency employee has paid delinquent tax bills, and a second bill that would give Congress oversight of millions of dollars in user fees collected by the IRS.

Democrats argued the Republicans are wasting floor time on “messaging bills” that have no chance of becoming law. They also blamed Republicans for reducing the IRS budget over the past five years.

“The House Republicans are trying to pass the buck, because they are not providing the bucks for adequate taxpayer services,” said Rep. Sander Levin, D-Mich.

IRS funding was essentially flat in 2016, and an additional $290 million provided to improve taxpayer services and to fend off hackers.

Overall, IRS funding adjusted for inflation has been reduced by 17 percent since 2010, according to the Center on Budget Policy and Priorities. According to the House Appropriations Committee, the IRS received $12.146 billion in funding in 2010 and $11.035 billion in 2016.

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