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GAO: Budget Cuts Forced IRS to Reduce Staff, Services

BudgetThe U.S. Internal Revenue Service saw its operational budget shrink from $12.1 billion in fiscal 2010 to $11.3 billion in fiscal 2014, according to a new Government Accountability Office report.

GAO said Friday it found that IRS reduced its workforce in three of the agency’s business units, postponed software acquisition programs and delayed background re-investigations on nearly 24,000 employees as a result of the budget cuts.

IRS adopted a flexible strategy to manage a $346 million budget reduction during the previous fiscal year as well as established a new committee and office to coordinate agency investments, the report noted.

The agency has also followed a GAO recommendation to calculate return on investments within the correspondence exam program and updated cost estimates related to healthcare reform.

GAO urged the U.S.’ tax collection agency to implement strategies to ensure that information technology spending data in congressional justification documents are accurate.

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