On a serious note, it's been a bad week for the IRS, but that agency is seriously struggling right now with a slashed budget and increased responsibilities. As David Cay Johnston, puts it "The IRS is drowning." http://www.cjr.org/united_states_project/the_other_irs_scand...
The only thing I've seen is that they're expected to expand to take on Obamacare, and may not have the funding to do so.
Do you have the specific details on their budget being cut? Hasn't Obama expanded their budget in the last four years?
What's absurd is that estimates of ROI on IRS funding range from 7:1 to 10:1. So it's really not about the budget. I'll leave it as an exercise for the reader to speculate on what's really behind the underfunding of the IRS.