Daily Tax Update - January 9, 2014: National Taxpayer Advocate Report Focuses on Taxpayer Bill of Rights and IRS Funding

NATIONAL TAXPAYER ADVOCATE REPORT FOCUSES ON TAXPAYER BILL OF RIGHTS AND IRS FUNDING:  Today, National Taxpayer Advocate Nina E. Olson released her 2013 annual report to Congress which urges the IRS to adopt a comprehensive Taxpayer Bill of Rights. Olson also expressed concern about IRS funding levels.

Olson said in the report, “The year 2013 was a very challenging one for the IRS. Because of sequestration, the IRS’s funding was substantially cut, which translated into a reduction in taxpayer service. Public trust in its fairness and impartiality was called into question because of reports the IRS subjected certain applicants for tax-exempt status to greater review based on political-sounding names. And because of the 16-day government shutdown, the agency could not complete preparations for the upcoming tax filing season on time, delaying the date on which taxpayers can first file returns and claim refunds.”  Olson added, “From challenges can come opportunities, and this report presents a ‘21st century vision’ designed to meet taxpayer needs and enhance voluntary tax compliance.”

Additional information can be accessed via: Executive Summary: 2013 Annual Report to Congress and Complete Report: 2013 Annual Report to Congress