The Nation & World - Wednesday, April 07, 2010

Washington, D.C. - As Americans work to file their tax returns by April 15^th, the Internal Revenue Service (IRS) continues to enjoy a taxpayer-funded slush fund.  The IRS is permitted to charge taxpayers a fee for some of the services it performs, and is allowed to keep and spend that money even though its administrative functions are already funded by Congress. U.S. Senator Russ Feingold has proposed ending the slush fund, which could save taxpayers $1.8 billion over the next ten year, as part of his Control Spending Now Act (CSNA), legislation to slash the deficit by about one half trillion dollars.

“If the IRS needs additional funding, it should come to Congress and request it rather than pocketing fees paid by taxpayers,” Feingold said.  

Spotlight on Spending:  Ending the IRS Slush Fund

Savings:  $176 million in 2010; $1.8 billion over the next 10 years

What it is:  According to the Congressional Budget Office, the IRS has used its fee-collecting authority primarily to charge taxpayers for entering into payment plans, an administrative function that is already funded through the agency's annual appropriation. By redirecting these funds, we can reduce the deficit by an estimated $176 million in 2010 and by $1.8 billion over the next 10 years. If the IRS needs more funds to do its job, it should make its case to Congress, not use a backdoor appropriation arrangement that potentially acts as an incentive for questionable practices and undermines congressional oversight of an agency with an especially sensitive mission.

U.S. Senator Russ Feingold, a member of the Senate Budget Committee, recently introduced the Control Spending Now Act (CSNA), which is made up of more than 40 proposals to cut the record deficit. To highlight examples of things Congress can do to reduce the deficit, Feingold launched a "Spotlight on Spending" series to help shine a light on examples of poor stewardship of American taxpayer dollars.  Other recent “Spotlights on Spending” include:

·         New Health Care Reform Law Includes CSNA Provisions to Save Billions

·         NBC News Interviews Feingold on His Effort to End Taxpayer Giveaway to Mining Companies

·         Save Tens of Billions by Reducing Cost Overruns on Major Weapons Systems

·         Transportation Secretary Endorses Feingold Proposal That Would Save At Least $626 Million in 2010 by Canceling Unspent Earmarks

·         Save $24.7 Billion by Delaying a Trip to the Moon

·         Save Nearly $20 Billion and Make Cheaper Prescription Drugs Available to Consumers

·         Radio and TV Martí