WASHINGTON, D.C. – Today at a Senate Finance Committee hearing, Senator Rob Portman (R-OH) questioned the Internal Revenue Service (IRS) Commissioner nominee, Mr. Charles Rettig on his commitment to improve the IRS’s accessibility for the American taxpayer and also his opinion on the IRS Oversight Board. 

A transcript of his remarks can be seen below and a video can be found here: 

 Portman: “ Mr. Rettig, you and I have had a chance to visit on a number of issues including, as the Chairman indicated, our appreciation that you’re willing to step up and serve. I also want to mention, if I could, Army Captain Charlie Rettig again, who just came back from a twelve month deployment in a combat zone. I’m going to embarrass him and ask him to stand up, if he would, just for a second because I would like to give him a round of applause. He’s right, you’re following him into service and although it’s not combat it’s going to be a tough job. You and I talked a lot about IRS reform, and one reason I’m excited about having a commissioner in place, I think it’s an opportunity for this committee, working with you and the Ways & Means Committee to make some changes at the IRS again. We did this twenty years ago with a big restructuring and reform act. It came after a commission was formed, actually by this body. I co-chaired that with Senator Bob Kerry, as you know. Along with Senator Ben Cardin, who is coming in a moment and will be here, we introduced legislation that Senator Hatch took a leadership role on, as did Senator Wyden in his role then on the committee. What we did was, we said ‘okay the IRS is not working, it’s not functioning to help taxpayers’ at that time. Only half of the calls were being answered when a taxpayer would call the IRS and they spent about $3 million dollars on an IT system that wasn’t working, wasn’t talking to each other. It was a big waste so we undertook a series of reforms, 52 different new taxpayer rights were added and so on IRS Oversight Board. Half of the calls were being returned during that period and we passed the legislation. Within ten years instead of half the calls being returned, 83 percent were being answered. So that was a big improvement. And all the ratings you looked at, you know, which agency department you feel has done a good job for the taxpayer, the IRS was at the bottom when we started the reforms. By the time ten years were up and the reforms were getting in place it was about half way up the ladder which wasn’t bad for the tax collection agency. I will say, you know, here we are ten years later and we’re kind of back to a situation where taxpayers are not being served. By 2015, only three years ago, 37 percent of calls were being answered. Today I understand it’s back closer to 50 percent but way unacceptable. First of all, do you agree with me on that?” 

Mr. Charles Rettig, Nominee for IRS Commissioner: “I agree that the American taxpayers should have their telephones answered if they call the Internal Revenue Service. I think that’s critical for not only the reason that they’re calling, I think it’s critical for them to earn the respect of the agency they’re interacting with when they get efficient and timely responses.” 

Portman: “That’s not the only measurement. Another measurement would be how many taxpayers can come in and actually get an answer from a person and that’s also declined. Another issue I know Senator Cardin and I are looking at is the appeals process. We believe it’s been more truncated since twenty years ago when we put the reforms in place and we need to get back to a system where people feel like they have an absolute right to appeal. There’s other issues as well but one that you and I talked a lot about in our meeting was the IRS Oversight  Board. This is something that Senator Kerry felt very strongly about, as did I and others. We put in place this IRS Oversight Board that would bring expertise, you know service sector expertise, management expertise. Frankly, I think it started off pretty well and then because of lack of support by any administration, frankly, along the way, it kind of fell by the wayside. The idea was not to have to have a commission every twenty years and not to have to have a process I think we have to undergo again this next couple of years. Hopefully with a new commissioner in place, hopefully with you. But to have this commission perform that role of oversight  and making sure the commission stayed on track, there are literally no members on the commission right now. Not a single member has been appointed and again this goes back administrations. The Obama administration no more supportive really than the Clinton administration was, then the Bush administration, or the current administration. So, what do you think about the IRS Oversight Board? Was it a good idea, was it a bad idea, do you think it should be resurrected and do you think it has a role to play?” 

Mr. Rettig: “I’m in favor of oversight, by the IRS Oversight Board, by this committee, by others. I think that it assists in the transparency of the operations of the Internal Revenue Service as well as providing assistance. As commissioner I would look forward to getting ideas from everybody. The more ideas the better and then we’ll work in the ideas collectively.” 

Portman: “Well I appreciate that answer and I do think that if you’re confirmed this committee will be very interested in working with you on IRS reform. I hope that will be part of the discussion. Last question, just briefly, on the idea of having an independent appeals process. Do you support taxpayers having access to an independent appeals process?” 

Mr. Rettig: “Absolutely.” 

Portman: “Thank you.” 

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