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IRS Error Causes Under Funding of Unemployment

Once again we see a federal government agency make major errors in their financial calculations.

On March 26, 2010 Michael R. Philips, Deputy Inspector General for Audit released a memorandum for the CEO of the US Treasury, it stated that the Internal Revenue Service had underestimated the Unemployment Trust Fund by $63 million dollars resulting in a shortage of the Federal Government’s share of unemployment benefits payments to eligible taxpayers.

Individuals that desire to confirm this article can find a full copy of the memorandum at

The IRS actually collected the necessary funds, but because of errors in their calculations related to the trust fund they transferred the “excess trust funds” to the General Fund.

What many of us find ironic is that this is the same agency that behaves like an American Gestapo in its enforcement of the Internal Revenue Tax Code when taxpayers make errors on their tax returns and find themselves unable to pay their tax liability all at once. The Internal Revenue has even aggressively persuaded taxpayers when the tax error occurred due to an IRS error or identity theft. This agency has been given the pass on numerous errors that resulted in the destruction of American citizens lives. When have you ever heard an public apology from the Secretary of Department of Treasury or the Commissioner of the Internal Revenue Service for grievous errors that harmed citizens?

The Internal Revenue Service is also the same agency that will monitor and enforce the purchasing of health insurance under the recently passed national healthcare bill. I wonder how many errors they will make in this endeavor.