The National Taxpayer Advocate’s Annual Report to Congress was released today. It contains a listing of the most serious problems, legislative recommendations, and most litigated issues. Volume 2 of the Report contains original TAS research and related studies. A useful link to the page where all of the above can be accessed is found here
We will be looking at and highlighting aspects of the report we find interesting. Readers of the blog may note my particular interest in return preparer regulation and the special compliance issues relating to low income taxpayers. The report contains a robust defense of the IRS’s efforts to regulate unenrolled preparers. It also discusses serious problems with the IRS’s use of Section 32(k) to ban taxpayers from claiming the EIC in future years.
The research study in volume 2 has papers on the efficacy of accuracy related penalties to enhance compliance, small business taxpayer compliance, the use of revenue officers versus automatic collection, filing season reform proposals, optimizing taxpayer services, and a comparison of private sector versus IRS collection practices.
I will give some insights on those sections and other parts of the report in the next few days. The annual report is essential reading for those interested in tax administration.