U.S. Reps. Mike Crapo (R-ID) and Ron Wyden (D-OR) introduced a legislative package that looks to make improvements to Internal Revenue Service (IRS) procedure and administration.
The Taxpayer Assistance and Service Act ( S. 3931) combines legislative proposals recommended by the National Taxpayer Advocate with standalone tax administration bills introduced by congressional members. They are designed to improve communication between the IRS and taxpayers, streamline processes for tax compliance, and ensure taxpayers have access to timely expert assistance, among other reforms.
“The process of filing your tax return and receiving your refund should be simple and fast,” Crapo, chairman of the Senate Finance Committee, said. “These reforms will improve the taxpayer experience and help the IRS better serve Idahoans and all Americans.”
Specifically, the Taxpayer Assistance and Service Act would:
- Digitize more tax returns to support faster refunds;
- Upgrade the “where’s my refund” tools so taxpayers know when to expect their refunds and what to do if they are delayed;
- Upgrade IRS online accounts so taxpayers and their representatives can review their returns and correspondence and respond to the IRS online;
- Protect taxpayers by strengthening standards for paid tax preparers;
- Expand IRS call-back options so taxpayers can request a return call more often and from more IRS phone numbers;
- Allow the U.S. Tax Court to hear cases relating to refunds;
- Increase the independence of the National Taxpayer Advocate and the IRS Independent Office of Appeals; and
- Protect victims of fraud from indefinite IRS scrutiny.
“One of the most absurd things about our tax system is that its complexity forces millions of Americans to turn to paid tax return preparers ever year, but there are zero minimum standards in place to ensure those paid preparers actually know what they’re doing or follow the law. Crooked tax return preparers are regularly exploiting taxpayers to pad their own bottom lines, and the worst part is, taxpayers might not even realize they’ve been ripped off until it’s too late,” Wyden said.
Wyden, the ranking member ion the Senate Finance Committee, added that the bipartisan bill has been in the works for years. He called it a major opportunity to improve IRS taxpayer service and help them get their refunds on time.
“I am grateful to Chairman Crapo and Ranking Member Wyden for the time and effort they and their staffs have invested to develop this broad and sweeping legislation that would strengthen taxpayer rights, reduce taxpayer burden, and improve tax administration,” Erin Collins, the National Taxpayer Advocate, said. “This bill incorporates dozens of common-sense proposals to make tax administration fairer, more transparent, and more responsive to taxpayers.”