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IRS going the Postal Service route

May 22, 2012

The Internal Revenue Service is going the way of the U.S. Postal Service.

Irs building signWait. Let me clarify that.

I'm not talking "going postal." Rather, the IRS says it will be reducing the number of its facilities, much the way the Post Office looked earlier this year to shutter the doors of some of its operations.

The reason in both cases is, what else, money.

The IRS today announced a sweeping office space and rent reduction initiative that over the next two years will close 43 smaller offices and reduce space in many larger facilities.

The changes are projected to save more than $40 million over two fiscal years, $17.2 million in annual rental costs in fiscal 2012 and $23.5 million in fiscal 2013.

Coupled with last year's space reductions, the IRS says its upcoming literal moves will slash the agency's total office space by more than one million square feet.

"Given today's tight budget environment, we have to be willing to make the tough but responsible calls to save taxpayer dollars," said IRS Commissioner Doug Shulman in a statement announcing the moves. "Cutting and consolidating our real estate is a responsible way we can save money. It's an important addition to our growing portfolio of cost-saving measures."

The plan calls for the IRS to:

  • Close 43 smaller offices. These are offices that currently have fewer than 25 employees. There was no mention of the displaced workers, but they presumably will be able to move to other offices.
  • Consolidate multiple offices within the same commuting area.
  • Explore innovative ways to do more with existing space, such as desk sharing and increased telecommuting.

No walk-in Taxpayer Assistance Centers are on the list. That means, says the IRS, the closures should have minimal taxpayer impact.

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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Comments
  • Michael S Cash
    14 years ago Reply

    Penny wise and pound foolish. The increase in other costs and lower collections because of lost productive time by field function employees who work in these offices and will have to travel to outlying areas and not being where you are needed is going to cost way more than the savings.

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