KATKO INTRODUCES BILL TO STOP IRS OUTSOURCING OF TAXPAYER EXAMINATIONS

WASHINGTON, D.C. -  U.S. Representative John Katko (NY-24) today introduced legislation to rein in IRS outsourcing of taxpayer examination work normally conducted solely by swornTreasury officials, contending that such contracts put the confidentiality of taxpayer information at risk, and waste millions of taxpayer dollars.  The bill amends IRS code to explicitly bar the Agency from dispensing summoned documents, or outsourcing sworn testimony to contractors outside the Treasury.
 
“The IRS has said that it can’t afford to provide basic taxpayer services that have long been taken for granted.  During the last filing season, the IRS simply hung up on millions of taxpayers, rather than answering their tax questions,” said Rep. John Katko.  “Now, despite having tens of thousands of employees dedicated to enforcement, the IRS is spending millions of dollars on outside legal help to aid in its enforcement efforts.”
 
Prior to the IRS’ decision to hire an outside law firm last year to aid in a case, examination work such as that being conducted in this case had always been done by sworn IRS agents.  Federal statute puts severe limits on the dissemination of information filed with the IRS.  In order to justify this unprecedented move, the Administration skirted normal rulemaking procedures and issued a temporary regulation without a public comment period to allow this type of examination work.  Rep. Katko’s bill adds to current law to explicitly prohibit this type of outsourcing, and ensures that the temporary regulation cannot continue to be utilized for this purpose.
 
“Private taxpayer information must remain private, and this type of outsourcing puts that basic principle at risk,” continued Rep. John Katko.  “My bill protects the confidentiality of taxpayer information, and protects the taxpayer’s hard-earned money.  I’ll continue to do everything in my power to ensure that taxpayer money is usedproperly, and that government agencies are held accountable.”
 
Congressman John Katko represents the 24th Congressional District of New York, which includes all of Onondaga, Cayuga, and Wayne Counties, and a portion of Oswego County.  For more information, please visit Katko.house.gov or facebook.com/RepJohnKatko.
 
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