WASHINGTON, D.C. – Congressman Darin LaHood introduced H.R. 5342 the Improving Assistance for Taxpayers Act yesterday, which would strengthen protections for taxpayers by requiring the Internal Revenue Services (IRS) to respond in a timely manner to Taxpayer Assistance Directives (TAD) issued by the Taxpayer Advocate Service (TAS).
“Dealing with the IRS can be frustrating, which is why our Taxpayer Advocate Service must have the tools it needs to get answers and results for taxpayers,” said Rep. LaHood. “When the TAS issues directives to address systemic problems at the IRS, it deserves more than either a form letter or no response at all. That is why I have introduced the Improving Assistance for Taxpayers Act, which will require the agency to send a detailed response to TAS directives within 30 days and notify Congress if they fail to do so. Taxpayers expect government agencies to function with efficiency and transparency, and this bill will help bring about both at the IRS.”
The Taxpayer Advocate Service (TAS) provides free help to those with unresolved tax problems with the IRS. They include the two Local Taxpayer Advocates (LTA) in Illinois, with offices in Chicago and Springfield. The TAS is charged with advocating for taxpayers both in specific cases and systemically.
To confront systemic issues within the IRS, the TAS is able to issue Taxpayer Assistance Directives (TAD). A TAD may require an IRS unit to change procedures “to improve the operation of a functional process or to grant relief to groups of taxpayers (or all taxpayers) when implementation will protect the rights of taxpayers, prevent undue burden, ensure equitable treatment or provide an essential service to taxpayers.” However, these TADs are not always responded to by the IRS, with some responses comparable to a form letter response. In a typical year, the National Taxpayer Advocate might issue anywhere from zero to three TADs, although more would likely be issued if the directives were more effective.
The Improving Assistance for Taxpayers Act will codify that the IRS is required to issue a detailed response to TADs ordered by the Taxpayer Advocate within 30 days. To further increase transparency, the Taxpayer Advocate will be required to report to Congress when the IRS does not respond to TADs.
