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Kind Questions IRS on Waste

March 17, 2009
Press Release

WASHINGTON, DC – In an effort to highlight ways we can eliminate waste in government agencies, U.S. Rep. Ron Kind (D-WI) recently sent a letter to the Internal Revenue Service questioning the wisdom of spending $3.3 million sending out withholding tables readily available online.

“With nearly all small business owners using the internet for their taxes and banking, there is no reason for the federal government to spend more than $3 million to send out hard copies of tax information that is readily available online,” Rep. Kind said.  “This money could be better spent hiring additional employees, or any number of other ways.  We must identify areas where we can cut wasteful spending like this, if we’re going to get our fiscal house back in order.”

The Wall Street Journal recently reported that the IRS would be sending out 9 million copies of new withholding tables which have changed due to the Making Work Pay tax credit (passed as a part of the Economic Reinvestment and Recovery Act).  During a Ways and Means Committee hearing shortly after the article was published, Rep. Kind questioned the IRS Deputy Commissioner on the cost of this action, which turned out to be nearly $3.3 million.

“If Senator Proxmire was still around, this would be a perfect candidate for his ‘Golden Fleece Award,’” Rep. Kind added.  “Ultimately we are the stewards of taxpayer dollars and the federal government must be smarter with people’s money.  It is my hope that by drawing attention to this matter the IRS and other federal agencies will think twice before operating ‘business as usual’ when things around them have changed.”

Read Rep. Kind’s letter here.