U.S. Senate Finance Committee Chairman Mike Crapo and Ranking Member Ron Wyden have introduced a bipartisan discussion draft aimed at improving the procedures and administration of the Internal Revenue Service (IRS). The draft suggests several changes intended to enhance taxpayer experience, improve communication with the IRS, and streamline tax compliance processes.
"As the tax filing season gets underway, this draft legislation suggests practical ways to improve the taxpayer experience," stated Crapo and Wyden. They emphasized that the adjustments are meant to facilitate better communication between taxpayers and the agency, simplify compliance processes, and provide timely expert assistance.
Erin Collins, the National Taxpayer Advocate, expressed support for the draft. "This bipartisan draft bill, several years in the making, would significantly strengthen taxpayer rights in nearly every facet of tax administration,” she said. Collins encouraged both taxpayers and tax professionals to review the draft carefully and provide feedback.
The proposed policies include improvements to "math error" notices to ensure timely responses from taxpayers, streamlining offers-in-compromise reviews for resolving tax debts, simplifying foreign bank account report compliance, clarifying Tax Court jurisdiction, expanding independence for the National Taxpayer Advocate from the IRS, increasing penalties on harmful actions by tax professionals, enhancing access to IRS appeals offices, extending electronic submission rules akin to mail submissions for timeliness assurance, protecting taxpayers through due process in PTIN issuance or revocation, strengthening whistleblower protections while maintaining confidentiality, and safeguarding hostages from unfair tax penalties.
These proposals reflect recommendations from nonpartisan legislative initiatives by the National Taxpayer Advocate as well as individual bills by congressional members. The goal is to address challenges within the current federal tax administrative system.
The full text of the discussion draft is accessible online along with a section-by-section breakdown. Comments on this draft are welcomed until March 31, 2025.
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