National Taxpayer Advocate Delivers Annual Report to Congress; Discusses Tax Reform Implementation and Unveils "Purple Book"

WASHINGTON, Jan. 10, 2018 /PRNewswire/ -- National Taxpayer Advocate (NTA) Nina E. Olson today released her 2017 Annual Report to Congress, describing challenges the IRS will face as it implements the recently enacted tax reform legislation and unveiling a new publication, "The Purple Book," describing 50 legislative recommendations intended to strengthen taxpayer rights and improve tax administration. The report also examines a range of other tax administration issues.

The NTA's report says the reduction in IRS funding since FY 2010 has challenged the agency's ability to perform basic tasks of administering the tax system. "I see the consequences of reduced IRS funding and the choices made by the agency in the face of these funding constraints," Olson wrote. "Funding cuts have rendered the IRS unable to provide acceptable levels of taxpayer service, update its technology to improve its efficiency and effectiveness, and maintain compliance programs that both promote compliance and protect taxpayer rights. 'Shortcuts' have become the norm, and 'shortcuts' are incompatible with high-quality tax administration."

While Ms. Olson said the IRS needs additional funding, she also expressed concern that the agency has sometimes been too quick to cite funding constraints as a basis for inaction. "[L]imited resources cannot be used as an all-purpose excuse for mediocrity," she wrote. "There is not a day that goes by inside the agency when someone proposes a good idea only to be told, 'We don't have the resources.'" Notwithstanding funding constraints, she said there are steps the IRS can take to improve taxpayer service through creativity and innovation.

Still, the report says the implementation of major tax legislation is always a heavy lift for the agency. A preliminary estimate from the IRS projected it would require additional funding of $495 million in fiscal years 2018 and 2019.

"The IRS will have many issues to work through, and taxpayers will have questions. But with more funding, strong leadership, and a closer working relationship with Congress, I am convinced the IRS can do the job well," Olson said.

In the Advocate's new "Purple Book," she suggests Congress codify both the Taxpayer Bill of Rights and the IRS mission statement as Section 1 of the Internal Revenue Code.

This year's report identifies 21 problems, makes dozens of recommendations for administrative change, makes 11 recommendations for legislative change, analyzes the 10 tax issues most frequently litigated in the federal courts, and presents 7 research studies and 2 literature reviews.

Problems addressed include:

• Private Debt Collection.
• Online Taxpayer Accounts.
• Taxpayer Rights in "Real" vs. "Unreal" Audits.
• Streamlined Section 501(c)(3) Approval Process (1023 EZ).
• Passport Denial and Revocation.

Volume 2 of the report contains or outlines research studies on seven additional topics related to taxpayers. The report also contains literature reviews on two topics.

Visit www.TaxpayerAdvocate.irs.gov/2017AnnualReport for more information.

Related Items:

• Complete 2017 Annual Report to Congress  
• Executive Summary
• National Taxpayer Advocate Blog

About the International Conference on Taxpayer Rights

The NTA has organized and will convene the third International Conference on Taxpayer Rights in Amsterdam, Netherlands, May 3-4, 2018.  The conference will be hosted by the International Bureau of Fiscal Documentation and sponsored by Tax Analysts.  Registration is now open on the Taxpayer Rights Conference website.  "The International Conferences on Taxpayer Rights broadened the focus on taxpayer rights beyond the United States. Tax administrators, academics, and tax professionals from all over the world were afforded the opportunity to discuss the reasons for and challenges in adopting and implementing a Taxpayer Bill of Rights or taxpayer charter," said Olson.

About the Taxpayer Advocate Service

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. TAS can help if you need assistance resolving an IRS problem, if your problem is causing financial difficulty, or if you believe an IRS system or procedure isn't working as it should. And the service is free.

• Contact local Taxpayer Advocate at https://taxpayeradvocate.irs.gov/contact-us.
• Call TAS toll-free at 1-877-777-4778.
• For more information about TAS and your rights under the Taxpayer Bill of Rights, go to https://taxpayeradvocate.irs.gov.
• Visit TAS at facebook.com/YourVoiceAtIRS, Twitter.com/YourVoiceatIRS, and YouTube.com/TASNTA.

SOURCE Taxpayer Advocate Service

Related Links

https://taxpayeradvocate.irs.gov