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Income Tax

IRS Chief to Ted Cruz: Agency Won’t Simply Go Away

During the announcement of his candidacy for president last month, Cruz kicked off another controversy by advocating the elimination of the IRS. He said that the U.S. could impose a “simple flat tax that lets every American fill out his or her taxes ...

In a long discourse before the National Press Club on March 31, IRS Commissioner covered a multitude of topics, including how the IRS is still performing admirably in the face of recent budgets cuts and the steps being taken to thwart the ever-growing threat of identity theft. What’s more, the top boss at the nation’s tax collection agency has a message for some of its detractors It’s not going anyway anytime soon.

“You can call them something other than the IRS if that made you feel better,” Koskinen said after the speech in response to the call by Sen. Ted Cruz (Rep,-NTX) and other lawmakers to eliminate the agency he heads up, according to the Hill and various other media sources.

The IRS has been under fire the last few years due to a laundry list of complaints about reduced services for taxpayers, misspending of taxpayer funds and the Tea Party scandal centering around the extra scrutiny applied to applications for tax-exempt status by certain conservative-leaning groups. But Koskinen, who has only been on the job for 15 months, has remained resolute.

During the announcement of his candidacy for president last month, Cruz kicked off another controversy by advocating the elimination of the IRS. He said that the U.S. could impose a “simple flat tax that lets every American fill out his or her taxes on a postcard.” But Koskinen noted that even a rudimentary system would still require personnel to administer the operation.

“Somebody has to collect the money, and then somebody also has to make sure when you fill in the small card, you’re putting in the right numbers,” Koskinen told the Hill.

In both his speech to the National Press Club and the ensuing remarks, the IRS Commissioner conceded that the Tea Party scandal has eroded the public’s faith in the agency. “I think that’s a lot of what’s behind, you know, ‘get rid of the IRS.’ It’s really ‘get rid of this complicated tax code,” said Koskinen. “And to that extent, I think that’s a reasonable goal.”

“Being a federal employee, our options are limited under this terrible law,” the Washington Post quoted Koskinen. “There are all sorts of laws I oppose that I nonetheless follow. I support a flat tax, but that doesn’t mean I refuse to pay my taxes in the meantime.”

Ted Cruz isn’t the only Republican calling for the abolition of the IRS. Sen. Rand Paul (Rep.-KY), who is also expected to a launch a bid for the White House in 2016, has endorsed the flat tax concept. Rand has said that the IRS is “too big” and “too powerful” and thinks the tax code should be scrapped.

Although this could turn into a pivotal election issue, don’t count on a major overhaul of the tax system just yet. And, even if that occurs, it is extremely unlikely that the IRS will vanish into thin air.