Shulman Confirmed By Senate to Lead IRS

The Senate unanimously confirmed Douglas H. Shulman as the commissioner of the Internal Revenue Service Friday, ignoring the objections of the National Treasury Employees Union, which had opposed his views that the collection privatization system was working well.

NTEU President Colleen M. Kelley wrote in an email that the union plans to continue to press Shulman to discontinue the program and reiterated the union’s position that the program poses a threat to taxpayer privacy.

“In its first year, the program has already resulted in a net loss to the Treasury of $50 million and generated multiple taxpayer complaints,” wrote Kelley. “The IRS Data Book shows that the IRS is one of the most efficient tax collection systems in the world, spending only 40 cents to collect $100.”

Kelley wrote that Shulman could change his support for privatization once he has worked with IRS staff. “I am hopeful that he—like so many members of Congress—will determine that it is a waste of taxpayer dollars and will focus the resources of the IRS where they can bring in a substantially greater return on investment.”

The Tax Fairness Coalition, which represents the private collection firms, disagrees with Kelley. Coalition spokesperson Jeff Trinca has said that the program is on pace to surpass the $23 million in gross collections that the IRS has projected for 2008. Opponents to the program, including the IRS’s Taxpayer Advocate Nina Olson, have said that net revenue for the program will be only $11 million this year.

After his confirmation Friday, Shulman said he would work to ensure that the tax agency is fair, and he would concentrate both on enforcement and service.

"For the majority of Americans who pay their taxes willingly and on time, there must be clear guidance, accessible education and outstanding service," Shulman said in a statement. "For taxpayers who intentionally evade paying taxes, there must be rigorous enforcement programs."

Shulman has been vice chairman of the Financial Industry Regulatory Authority, previously known as the National Association of Securities Dealers. He also has served on the bipartisan National Commission on Restructuring the Internal Revenue Service. President Bush nominated Shulman to head the tax agency in November. He replaces acting commissioner Linda Stiff.