By Jacob Fulton
CQ-Roll Call
(TNS)
WASHINGTON — Senate Finance Committee leaders introduced a bipartisan bill Thursday to overhaul the procedures and administration of the IRS.
The 162-page draft bill, called the Taxpayer Assistance and Service Act, bundles a number of already introduced tax administration bills with additional recommendations from the National Taxpayer Advocate, including provisions expanding the digitization of tax returns, creating a dashboard with information on call volume and expanding online accounts. The package is aimed at improving the taxpayer experience and streamlining processes for compliance.
The legislation, introduced by Finance Chairman Michael D. Crapo, R-Idaho, and ranking Democrat Ron Wyden of Orgeon, also includes a provision increasing the penalties for improper behavior from tax preparers, as well as another provision imposing more regulations for obtaining a preparer tax identification number.
National Taxpayer Advocate Erin Collins said the bill “would strengthen taxpayer rights, reduce taxpayer burden and improve tax administration.” Collins, who leads the independent office within the IRS designed to represent taxpayers, also said the measure “incorporates dozens of commonsense proposals to make tax administration fairer, more transparent and more responsive to taxpayers.”
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Also included in the bill is a noncontroversial provision that would extend tax deadlines for Americans held as hostages as well as for individuals who are wrongfully detained abroad.
Lawmakers had tried to pass that provision in 2024 but couldn’t because it was included in a bill that contained a controversial provision allowing the IRS broader ability to revoke organizations’ tax-exempt status if they are found to be supporting terrorists. That bill faced Democratic opposition due to concerns that it would allow then-President-elect Donald Trump to target nonprofits he doesn’t like.
Given the bipartisan nature of the bill from Crapo and Wyden, the sprawling package could see a smooth path forward if no surprise obstacles emerge.
“The process of filing your tax return and receiving your refund should be simple and fast,” Crapo said in a statement. “These reforms will improve the taxpayer experience and help the IRS better serve Idahoans and all Americans.”
The National Association of Tax Professionals said Feb. 26 it supports the Taxpayer Assistance and Service Act and commends Senate Finance Committee leadership for advancing legislation that strengthens tax administration, enhances transparency, and modernizes IRS service to taxpayers and tax professionals.
“As Congress continues efforts to improve oversight and accountability within the tax system, NATP believes strong professional standards, including a continuing education requirement for paid tax return preparers, must remain central to reform,” the organization said in a statement on Thursday. “NATP supports the inclusion of a continuing education requirement tied to PTIN eligibility to ensure preparers remain current on evolving tax law and compliance obligations. Tax law changes frequently. Ongoing education protects taxpayers, limits preventable errors, and promotes confidence in the integrity of the tax system.”
The strength of the U.S. tax system depends on knowledgeable, ethical preparers who stay current and take responsibility for their work,” said NATP CEO Scott Artman, CPA, CGMA.
“Modernization matters, but meaningful education standards and fair oversight are essential to protecting taxpayers and maintaining trust in the profession,” he said in a statement.
[CPA Practice Advisor added the statements from the National Association of Tax Professionals and Scott Artman to this article.]
Photo credit: Louis Velazquez/Unsplash
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