IRS: Budget Cuts Would Hurt Service, Raise Deficit
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IRS: Budget Cuts Would Hurt Service, Raise Deficit

The Internal Revenue Service is warning that cuts Congress has proposed in the agency's budget would mean worse service to taxpayers and would cost the government $4 billion a year in lost revenue.

IRS Commissioner Douglas Shulman has written a letter to lawmakers saying the cuts would mean a noticeable degradation of service and enforcement by the agency, and would cost the government far more than it would save in spending cuts.

The House Appropriations Committee has approved a bill that would provide $11.5 billion for the IRS in fiscal 2012, which began Oct. 1. The Senate Appropriations Committee version would provide $11.7 billion. Both are hundreds of millions less than the agency received last year.

Copyright 2011 The Associated Press.