The IRS Loses Public Trust Yet Again

Last updated on July 24, 2013

Instead of recovering from the blows of the Tea Party controversy and their $4.1 million training conference, the IRS has stepped into another mess. The IRS gave tax credits worth $2 billion to paper industry companies in 2010. This has led to suspicions and questions regarding the IRS tax credit review process. There has also been speculation that the paper companies spent millions lobbying the IRS and other government departments to get the tax credits cleared without fuss.

After the discovery of the Tea Party bias, the IRS has been under a microscope, and outside departments are delving deeper into all aspects of the IRS’ policies and practices. It was only a matter of time before someone became suspicious of the large amount of tax credits given to the paper industry in a time when the country was struggling economically. If the IRS is found to be guilty of loosening the tax credit review process for paper companies, its entire review system will be brought into question.

The Tea Party controversy involved a small amount of low-level employees but with the latest tax credit controversy, officials of the highest levels of the IRS are believed to be involved.

The multiple blows the IRS’ reputation has received in the last few months signals for the overhaul of the entire organization. It is for the government to ensure that the nation’s tax agency remains unbiased, as it is essential for the IRS, as the nation’s tax collection agency, to treat every taxpayer, large and small, equally.