The Administration's Fiscal Year 1987 Budget Request for the Internal Revenue Service

GAO discussed the administration's fiscal year (FY) 1987 budget and FY 1986 supplemental appropriation requests for the Internal Revenue Service (IRS). GAO found that: (1) the 1986 supplemental budget request calls for increasing IRS staffing by 6,950 average positions and IRS funding by $340 million, of which about $157 million would offset reductions required by the Balanced Budget and Emergency Deficit Control Act; (2) the FY 1987 budget request builds on the 1986 supplemental request by seeking to further increase IRS staffing by 1,360 average positions and IRS funding by about $272 million; and (3) the requests provide for a 10-percent increase in the staffing level and a 12-percent increase in the funding level currently authorized by Congress for FY 1986. GAO believes that: (1) the approvals of the supplemental appropriation for 1986 and the FY 1987 budget are vital to prevent further erosion of the tax system; and (2) considering limitations in the IRS management information system, additional returns processing and collection resources may be warranted.