Audit: IRS reduced mailing costs due to budget cuts, not long-term strategy

According to the audit, the agency’s budget request for the 2011 fiscal year said it would bring down publishing and mail costs by $26 million, after a fiscal 2010 budget of $272 million in that area. The IRS has also eliminated other automatic mailings in recent years to reduce mailing costs. 

The report also found that the IRS task force, which came up with 25 proposals to help save money long-term, did not release documentation illustrating its methodology – something the inspector general said should be done in the future as the agency pushes ahead with cost-saving measures.

“In addition, these controls should be part of a long-term strategy to continually assess publishing and mail costs and identify opportunities for cost reductions and efficiencies,” the report said.

The inspector general recommended that the agency install internal controls to make sure that its data related to cost savings on mailing and publishing is reliable and develop a strategy guaranteeing that these issues are consistently looked at. The IRS agreed with both those recommendations.