PINCHING THE IRS

Another bit of news from Washington, this time from the Internal Revenue Service, may have brought a few smiles to weary taxpayers.

Like most of the federal government, the IRS is facing a reduction in funding for its operations. But the IRS commissioner, Margaret Milner Richardson, is protesting. She says you've got to spend money to collect money.

In effect, the House and Senate are looking at budget cuts for the IRS -- even though President Clinton requested a funding increase -- that would mean chopping about 8,000 of the tax agency's 114,000 full-time employees. Among the jobs to be cut would be many of the folks who answer taxpayers' telephone calls and give free advice on tax returns and complicated computations.

The IRS has a shabby track record when it comes to giving advice. Its telephone advisers are poorly trained and sorely lacking in any real expertise regarding the voluminous tax code. Having fewer of them dispensing bad advice could actually improve the overall performance of the IRS.

Beyond that, as Republican leaders in Congress already have stated, the IRS must learn to do better with less as government spending is brought into check.