On May 22, the Internal Revenue Service announced a sweeping office space and rent-reduction initiative that will close 43 smaller offices and reduce space in many larger facilities over the next two years. These measures will save more than $40 million in taxpayer dollars. Coupled with space reductions last year, the initiative will slash total IRS office space by more than one million square feet.
"Given today's tight budget environment, we have to be willing to make the tough but responsible calls to save taxpayer dollars," said IRS Commissioner Doug Shulman.
None of the offices being closed under this initiative are walk-in taxpayer assistance centers. The IRS anticipates minimal taxpayer impact as a result of these closures.
This cost-cutting initiative is projected to save $17.2 million in annual rental costs in fiscal 2012 and $23.5 million in fiscal 2013.
The IRS has more than 650 offices around the country. This initiative supplements space-saving projects over the past seven years that are now yielding $70 million annually in rental savings. This is part of a broader administration effort that has cut government real estate costs by over $1.5 billion and is on track to exceed the president's directive to save $3 billion by the end of the year.