IRS to Close Offices as Part of Administration’s Cost-Cutting Efforts

In a cost-cutting move projected to save $17.2 million in FY 2012 and $23.5 million in FY 2013, the IRS announced on May 23 that 43 of its smaller offices will be closed and space in many larger facilities will be reduced (IR-2012-54). IRS Commissioner Douglas Shulman, in announcing the reductions, said, “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.”

As part of the plan, over the next two years the IRS will close 43 small offices that have fewer than 25 employees and do not have taxpayer assistance centers. Further reductions will be achieved by consolidating multiple offices in adjacent areas and using existing space better by sharing desks and increasing telecommuting.

The IRS currently has more than 650 offices throughout the United States. According to the IRS, the announced closures are part of an effort by President Barack Obama’s administration to reduce government real estate costs by $3 billion by the end of the year.