01/12/2017

Taxpayer Advocate Calls for IRS Reform

The report argued that the IRS should service taxpayers' needs versus focus on enforcement

National Taxpayer Advocate Nina Olson released a report to Congress this week recommending that the Internal Revenue Service (IRS) shift its focus from enforcement to servicing the needs of taxpayers.

Olson said the IRS has viewed itself for years as primarily an enforcement agency, and currently allocates 43 percent of its budget to enforcing the tax code while only spending six percent on taxpayer outreach and education.

“To create an environment that encourages taxpayer trust and confidence, the IRS must change its culture from one that is enforcement-oriented to one that is service-oriented,” Olson said.

IRS Commissioner John Koskinen called the suggestion that the IRS is focused solely on enforcement “inaccurate.”

“We strongly believe that a balanced approach to taxpayer service and tax enforcement is critical to running a sound tax system,” Koskinen said.

Olson’s report also notes that significant budget cuts at the IRS since Fiscal Year 2010 have severely harmed the agency’s ability to meet taxpayers’ needs and improve its technology systems. Olson said Congress should pass tax reform and simplify the tax code to improve taxpayer compliance.

This article was provided by The Power of A.