WASHINGTON, D.C. - Today, the National Taxpayer Advocate’s 2009 Annual Report, highlighting the most serious problems encountered by taxpayers, was submitted to the Congress as required by the Internal Revenue Code. The report indicates that certain Internal Revenue Service (IRS) operations are harmful to taxpayers and tax administration.
“I thank the National Taxpayer Advocate for her annual report and continuing to raise the pressing issues faced by taxpayers," said Rep. John Lewis (D-GA), Chairman of the Ways and Means Oversight Subcommittee. “I am concerned that the ever-increasing burdens being placed on the IRS are leading to decisions that reduce the ability of taxpayers to get help from the IRS and hurt tax administration. I am troubled by the report of harmful collection practices, such as the use of liens in cases where the IRS knows there is a hardship. This does not make sense when so many Americans are struggling. I am pleased that the report focused on the need to improve tax return preparer accountability and competence, an issue of importance to the Subcommittee. We look forward to working with the Advocate and the IRS this year to explore the findings and recommendations in the Annual Report."
The Advocate reports that:
* Access to the IRS’s toll-free telephone service is declining as taxpayer demand for service is increasing;
* The one-size-fits-all lien filing policies circumvent the spirit of the law, fail to promote future tax compliance, and unnecessarily harm taxpayers;
* The IRS lacks a Service-wide return preparer strategy;
* Appeal efficiency initiatives have not improved taxpayer satisfaction;
* The IRS lacks a Service-wide electronic services strategy; and
* Other serious problems exist including: the needs of low-income taxpayers are not being adequately met, the correspondence examination program does not maximize voluntary compliance, and the steady decline in the Offer-in-Compromise program is leading to lost opportunities for taxpayers and the IRS.
Additionally, as required by law, the report includes legislative recommendations to mitigate identified problems, including recommendations to strengthen taxpayer protections in the filing and reporting of Federal tax liens and impose protections on refund offsets for Earned Income Tax Credit benefits.
