IRS cuts two chief executive posts but still faces budget cuts.

In an apparent move to meet deficit reduction targets, the Internal Revenue Service has cut its chief executive staff from six to four. The IRS has phased out the positions of chief of strategic planning and communication and chief financial officer. Responsibilities for both offices were distributed

In another personnel change, the IRS has replaced Associate Commissioner Larry Westfall, who retired in September, with Judy Van Alfen, former chief of taxpayer services. Van Alfen will oversee the tax systems modernization (TSM) effort. Members of Congress have criticized the IRS's modernization efforts as being both wasteful and lacking leadership. IRS spokesman Steve Pyrek told the Journal the recent moves were in response to such comments. "We are continuing to streamline," said Pyrek. "With fewer chief executives we have a tighter high executive cadre."

IRS faces more budget cuts

Despite IRS efforts to meet deficit reduction targets, the Senate Appropriations Committee approved in July cuts of approximately $890 million from the agency's projected 1996 budget. Deputy Commissioner Michael P. Dolan told reporters that the cuts were too deep and that the IRS would suffer "unavoidable" revenue loss. He said the belt tightening would disproportionately hit IRS compliance efforts, resulting in fewer processed returns and less revenue.

IRS spokesman Pyrek told the Journal that the budget cuts also would have a negative impact on the TSM program. "Projects such as the totally integrated exam system (TIES) could no longer be under the aegis of TSM." TIES is a new effort to speed up the IRS examination function by giving examiners access to files electronically. Cutbacks in the project "undoubtedly would result in revenue loss," said Pyrek.