Final answer:
The IRS Oversight Board can review and approve the IRS annual budget request but doesn't have authority over tax policies, individual cases, or personnel matters. Oversight is maintained through entities like the OMB to ensure efficiency and responsiveness.
Step-by-step explanation:
The IRS Oversight Board does not have the authority to affect tax policy or the processing of individual tax cases, nor can it intervene in IRS personnel or procurement matters. However, it can review and approve the IRS annual budget request. Oversight of the IRS and other government agencies is crucial as these entities play significant roles in the functioning of the country and are funded by taxpayer dollars. While they do not face market competition, the government, through agencies like the Office of Management and Budget (OMB), exerts pressure to increase efficiency and improve responsiveness to public needs.