WASHINGTON -- Budget cuts are hurting the Internal Revenue Service's ability to go after tax cheats, the agency's inspector general said Tuesday.
Tax collections from enforcement actions dropped by 9 percent in the 2012 budget year, to a little more than $50 billion, said the report by J. Russell George, the Treasury inspector general for tax administration. It was the second year in a row that enforcement collections dropped.
In 2011, enforcement revenue dropped by more than $2 billion. Last year, it dropped by $5 billion more. At the same time, the IRS is opening more delinquent taxpayer accounts than it is closing, the report said.