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National Taxpayer Advocate, Nina Olson, Delivers Report, Congress Pandiculates

July 2nd, 2009 · 6 Comments

It’s that time of the year again in the world of taxation when two things occur:

  1. The indefatigable Nina Olson, the National Taxpayer Advocate, tells Congress what the IRS must do to improve its service and comport with its stated mission; and
  2. Congress yawns.

Ms. Olson delivered this year’s version of her mid-year report to Congress yesterday.

I have only perused the 131 page tome, but I suspect Ms. Olson was able to cobble it together rather quickly just by cutting and pasting large chunks of last year’s missive.

I have said it before, here, here and here, Nina Olson is a godsend for taxpayers.

Now if only we could get Congress to take her seriously.

Here are three key areas of this year’s report. I have emphasized in bold italics the language that indicates Ms. Olson has unsuccessfully made these same recommendations to Congress before:

Taxpayer Services

The Advocate’s report expresses concern that the momentum to implement and refine the TAB recommendations has abated. It recommends that the IRS reinvigorate its efforts to pursue cross-functional, research-driven service improvements.

Momentum has abated! IRS must reinvigorate its efforts!

Oversight of Tax Return Preparers

The Advocate reiterates her long-standing recommendationthat the government do more to protect taxpayers by regulating unenrolled federal tax return preparers, including by requiring initial testing and continuing professional education, and recommends that the IRS step up enforcement actions against preparers who fail to perform due diligence or consciously facilitate noncompliance.

Reiterates long-standing recommendation!

Offers in Compromise

For the past nine years, the Advocate has expressed concern about the effectiveness of the IRS’s offer in compromise (OIC) program, a program designed to enable financially struggling taxpayers to pay what they can afford and make a fresh start. The Advocate believes the IRS requires taxpayers to provide too much information with the initial application, thereby deterring taxpayers who legitimately qualify for the program from applying for it.

For the past nine years!

Can you blame taxpayers for thinking this is all just posturing?

Tags: Taxpayer Advocate

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