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Software Tax Internal Revenue Service help centers in 68 communities are slated to close to help the IRS reduce costs and modernize its operations, the agency said.If you would like to receive late breaking business news covered by AXcess News then you need to subscribe. Membership is free.

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Tax Help May 28, 2005 (AXcess News) Washington - Internal Revenue Service help centers in 68 communities are slated to close to help the IRS reduce costs and modernize its operations, the agency said.

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Help Tax The Internal Revenue Service is closing the help centers in communities where geographic and demographic factors, employee costs, and expenses were considered in factoring in which IRS help centers would be closed. The IRS is also moving to coax more tax preparers to use electronic filing services in an effort to manage federal income tax filings in a more efficient and cost-effective manner.

Recently, the IRS has been relying more on informant information, reported Cryan, particularly as a result of the IRS disclosure efforts over the past year regarding abusive tax shelters. The disclosures required under current tax law, for instance, have given the IRS lists of promoters and tax shelter participants, all of which have proven fertile ground for gathering information about tax shelter activities. In addition, income taxpayers, card schemes through the Offshore Voluntary Compliance Initiative (OVCI).

Ernst Ernst Guide Guide Tax Critics say streamlining operations by eliminating IRS help centers forces many income tax filers to seek professional help in preparing their federal income tax forms, putting undue financial burdens on the elderly and low-income wage earners.

Tax Return The Internal Revenue Service said the closures are necessary though the federal tax agency said that employees there would be offered early retirement, where qualified, and that those remaining would be offered positions in other IRS locations. That no layoffs were expected from the IRS help center closures. Colleen Kelley, president of the National Treasury Employees Union, told reporters that the IRS is forcing consumers to use the Internet by closing the centers.Kelly said that many of the tax payers who use the IRS help centers do not have access to the Internet. The IRS said that over the last two years tax payer use of its 400 help centers across the nation had dropped by 19 percent. Use of toll-free phone lines to seek help climbed 7 percent in the same period, while visits to IRS Web sites saw triple-digit increases, the agency says.

Return Tax The IRS has given no schedule to its 68 help center closings, though some are slated to be closed this fall, the tax agency said.

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