Like most of the other government agencies that are being downsized, the IRS needs a massive restructuring. Technology updates could save time and eliminate the need for many personnel. Here is my first hand experience of dealing with the IRS.
My 80-year-old mother-in-law was fined by the IRS for not paying enough income taxes in an old tax return and annual penalties adding to the underpayment raised the total amount due to over $13,000. After only a little research on my part, I discovered that someone had stolen her DECEASED husband's ID and had filed a tax return in another state for a tax refund. I literally figured this out in one day.
Now, this next part is unbelievable. I could not CALL the IRS to explain. I had to reply in writing or... wait for it... by fax! Fax machine! I hadn't owned a fax machine in 10 years! Worse, the IRS letter told me that I must reply within 30 days and required that I wait 30 days before following up on my initial letter/fax.
I sent them the husband's obituary in the local paper, his official death certificate, proof of residence in Florida when the bogus tax return was filed in California... and waited. I figured that was overkill, the IRS would have to be complete idiots not to see that this was identity theft, but better to send too much instead of not enough, right?
A couple of months later, the IRS requested bank statements. I sent them. This went back and forth for months with the IRS requesting more information. Often the requests asked for information that I had already sent them!
Finally, in frustration, I sent the IRA a mound of paper with over 200 pages of bank statements, proof of residences, proof that someone else lived at the out of state address when the bogus return was filed, and waited. A few months later, the case was dropped.
THIS PROCESS TOOK OVER TWO YEARS!