WASHINGTON, D.C. - The House of Representatives today approved H.R. 5719 the Taxpayer Assistance and Simplification Act of 2008 by a vote of 238 to 179.
“As millions of people finish their tax returns, file and pay their taxes, the bill before us makes our Federal tax system fairer," said Ways and Means Chairman Charles B. Rangel (D-NY). “Both sides of the aisle have taken the lead on provisions contained in this bill, which responds to recommendations made by the Taxpayer Advocate."
The legislation, introduced by Rangel and Oversight Subcommittee Chairman John Lewis (D-GA), modernizes Internal Revenue Service functions to provide protections to taxpayers and improve outreach.
Additionally, the bill repeals the IRS Private Debt Collector program, an imprudent outsourcing of an inherent government function that to date has spent $75 million to collect just $35 million.
“It would once and for all repeal the authority of the IRS to enter into private debt collection contracts," said Rep. Lewis. “This program violates the public trust and must end."
The Taxpayer Assistance and Simplification Act of 2008 is the result of hearings conducted by the Oversight Subcommittee.
The provisions included in H.R. 5719 as agreed to by the Committee would:
• Eliminate the special requirements for individuals to keep detailed records of calls made on employer-provided cell phones.
• Delay for one year the imposition of a three-percent withholding requirement on government payments for goods and services made after Dec. 31, 2010.
• Stop federal contractors from using foreign subsidiaries to evade Social Security and other employment taxes.
• Make the administrators of state and local government programs liable for paying the employment taxes on amounts paid by government programs to in-home care workers provided to elderly and disabled persons.
• Repeal the IRS’s authority to use private debt collection companies to collect Federal taxes.
• Prohibit the misuse of Department of the Treasury names and symbols in misleading websites and "phishing" schemes.
• Protect low-income taxpayers by prohibiting IRS debt indicators for predatory refund anticipation loans, allowing IRS employees to refer taxpayers to qualified low-income taxpayer clinics, and authorizing funding for Volunteer Income Tax Assistance ("VITA") programs.
• Require the IRS to notify taxpayers if it suspects theft of a taxpayer`s identity.
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