THE WHITE HOUSE

Office of the Press Secretary

STATEMENT BY THE PRESIDENT

on IRS Reform

I am very pleased that our efforts to reform the IRS took a major step forward today with a bipartisan agreement reconciling the House and Senate legislation. I have worked very hard to give the American people an IRS that is fairer and more responsive to their needs. Enactment of this compromise reform will build on our initiative to give Americans a modern, customer-friendly IRS.

Our new IRS Commissioner, Charles Rossotti, has brought forceful leadership and the best management techniques from the private sector to the agency. This bipartisan compromise will give him the tools he needs to succeed, while expanding taxpayer rights. It will allow the IRS to bring in talent and expertise from the private sector, strengthen the Taxpayer Advocate's office, and expand the convenient and popular practice of filing tax returns electronically and over the phone. We are pleased that Congress incorporated the Commissioner's sweeping reorganization of the IRS along customer service lines and addressed our concerns about earlier versions of this reform by correcting provisions that would have inadvertently allowed non-compliant taxpayers to avoid paying their fair share of taxes. The Congress also made sure that the Treasury Secretary and the IRS Commissioner will serve on the board overseeing the IRS.

Under the leadership of the Vice President and Secretary Rubin, we have made great strides in our efforts to revamp customer service at the IRS. We have expanded phone and office hours, created popular new problem-solving days, and launched independent citizen advocacy panels. We cannot solve every problem at the IRS at once, but we are committed to correcting problems when they arise, and this bill will help us do that. I urge Congress to send me this compromise legislation quickly, but to make sure that it is fully and properly funded.

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