The Internal Revenue Service's (IRS) fiscal year 1995 budget request totals $7.6 billion, a 3.7 percent increase over the previous year's appropriation that is due mainly to a growth in tax systems modernization. At the same time, the budget could cut IRS' staffing level by 5.2 percent, the brunt of which would fall on IRS' enforcement programs. Apart from IRS' budget request, the President has proposed giving IRS another $405 million for several compliance initiatives that would boost IRS staffing by about 5,000 positions and reverse the decline in enforcement staff. GAO's analysis of IRS' budget request and the proposed initiatives raises questions about unfunded costs, compliance initiatives and the use of telephone collections for delinquent accounts, user fees for taxpayer photocopies and other services, tax systems modernization, and trends in return filing.