Daily Tax Update - June 27, 2012: Taxpayer Advocate Report Lists Priorities For Coming Year

TAXPAYER ADVOCATE REPORT LISTS PRIORITIES FOR COMING YEAR:  National Taxpayer Advocate Nina Olson released a report to Congress that identifies the priority issues the Taxpayer Advocate Service (TAS) will focus on during the upcoming fiscal year.  The report expresses concern about the taxpayer impact of expired and expiring tax provisions, the rise in tax fraud and tax-related identity theft, and attempts to limit the National Taxpayer Advocate’s formal input on issues that affect taxpayer rights and burdens.

  • Regarding the expiring provisions, Olson wrote, “The continual enactment of significant tax law and extender provisions late in the year has led to IRS delays in handling millions of taxpayers’ returns and caused many taxpayers to underclaim benefits because they did not know what the law was.  Because of the magnitude of these challenges and the uncertainty about such a large number of important provisions, the 2013 filing season is already at risk.  The 2013 filing season is likely to pose problems for many (if not most) taxpayers and the IRS if Congress does not address the many provisions that have already expired or soon will.”
  • The report continued, “In addition to the provisions that expired at the end of 2011, an even larger number of provisions are set to expire at the end of 2012, including the Bush-era cuts in marginal tax rates, reduced tax rates on dividends and long-term capital gains, various marriage penalty relief provisions, certain components of the child tax credit, the earned income tax credit, and the adoption credit, and the moratoria on the phase-outs of itemized deductions and personal exemptions.  An aura of uncertainty prevails as the IRS and taxpayers wait for word about what will be the law governing us this year and for the near future.  This uncertainty affects the IRS’s ability to smoothly administer the filing season and taxpayers’ ability to make plans.”
  • The report can be accessed via:  National Taxpayer Advocate's FY 2013 Objectives Report to Congress.

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE:  As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

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