Taxpayer Advocate, AICPA Back Bipartisan Draft Bill to Improve IRS Administration

IRS | January 30, 2025

Taxpayer Advocate, AICPA Back Bipartisan Draft Bill to Improve IRS Administration

A discussion draft, released Thursday by Sens. Mike Crapo (R-ID) and Ron Wyden (D-OR), that proposes several ways to fix IRS procedures and administration has strong support from National Taxpayer Advocate Erin Collins and the AICPA.

Jason Bramwell

A discussion draft, released Thursday by Sens. Mike Crapo (R-ID) and Ron Wyden (D-OR), that proposes several ways to fix IRS procedures and administration has strong support from National Taxpayer Advocate Erin Collins and the AICPA.

The bipartisan draft bill, called the Taxpayer Assistance and Service Act, was issued the week tax-filing season started, with the IRS facing the possibility of more budget cuts, a hiring freeze, and, currently, a lack of a full-time leader.

“As the tax filing season gets underway, this draft legislation suggests practical ways to improve the taxpayer experience,” Crapo, leader of the Senate Finance Committee, and Wyden, the panel’s ranking member, said in a joint statement on Thursday. “These adjustments to the laws governing IRS procedure are designed to facilitate communication between the agency and taxpayers, streamline processes for tax compliance and disputes, and ensure taxpayers have access to timely expert assistance.” 

The discussion draft includes policies that would:

  • Require the IRS to improve “math error” notices so that taxpayers are better positioned to timely respond to them.
  • Streamline review of offers-in-compromise to facilitate the taxpayers’ resolution of tax debts.
  • Simplify foreign bank account report (FBAR) compliance so that fewer taxpayers will fail to file key forms.
  • Clarify and expand Tax Court jurisdiction so that more taxpayers can pursue their claims in an appropriate venue.
  • Expand the independence of the National Taxpayer Advocate from the IRS.
  • Increase civil and criminal penalties on tax professionals that deliberately take actions to harm their clients.
  • Expand taxpayer access to the IRS Independent Office of Appeals.
  • Extend the so-called “mailbox rule” to electronic submissions so that taxpayers have certainty their materials are submitted on time.
  • Protect taxpayers by adopting reasonable standards and due process for issuing and revoking return preparer identification numbers (PTINs).
  • Strengthen the IRS whistleblower program while protecting the confidentiality of taxpayer information.
  • Protect hostages from unfair tax processes and penalties.

Proposals in the discussion draft largely reflect nonpartisan legislative proposals recommended by Collins in her recent report to Congress, as well as standalone tax administrative bills introduced by congressional members, a media release from Crapo and Wyden says. The provisions are centered on seeking to reduce or eliminate challenges faced by taxpayers and other stakeholders within the current federal tax administrative system. 

Erin Collins

“This bipartisan draft bill, several years in the making, would significantly strengthen taxpayer rights in nearly every facet of tax administration,” Collins said in a statement. “I encourage taxpayers and the tax professional community to carefully review the draft and provide feedback to refine it, and I encourage Congress to prioritize the passage of this common sense bill to ensure stronger protections for taxpayers and a more fair and transparent tax system.”

The AICPA said Thursday it strongly supports and endorses the following provisions found in the TAS Act:

  • Sec. 101. Scanning and Digitization of Tax Returns and Correspondence;
  • Sec. 102. Establishment of Dashboard to Inform Taxpayers of Backlogs and Wait Times;
  • Sec. 103. Expansion of Electronic Access to Information about Refunds;
  • Sec. 104. Expansion of Callback Technology and Online Accounts;
  • Sec. 105. Improvement of Notices of Math or Clerical Error;
  • Sec. 108. Individuals Facing Economic Hardships Informed of Collection Alternatives;
  • Sec. 112. Postponement of Certain Deadlines by Reason of Disasters Made Applicable to Limitation on Credit or Refund;
  • Sec. 116. Modification of Rules for Postponing Certain Deadlines by Reason of Disaster;
  • Sec. 405. Operations to Assist Taxpayers Experiencing Hardships During a Lapse in Appropriation;
  • Sec. 504. Authority to Deny, Revoke, or Suspend Preparer Tax Identification Numbers;
  • Sec. 903. Quarterly Installments for Estimated Income Tax Payments by Individuals;
  • Sec. 904. Establishment of a Failure-to-Pay Penalty Safe Harbor for Individuals; and
  • Sec. 905. Extension of Mailbox Rule to Electronic Submissions and Payments.
Melanie Lauridsen

“We are grateful to Senators Wyden and Crapo for putting together a thoughtful package that will provide much-needed support to taxpayers,” Melanie Lauridsen, vice president of tax policy and advocacy for the AICPA, said in a statement. “When passed, the TAS Act will be one of the most significant tax packages we will have seen in recent years. It will be instrumental in establishing a foundation that helps simplify some of the laborious tax filing processes and allows taxpayers to better meet their tax obligations. We look forward to working with the Senators Wyden and Crapo as this discussion draft moves forward.”

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