National Taxpayer Advocate Delivers Annual Report to Congress; Focuses on Top Issues Facing Taxpayers: Taxpayer Service, Collection, and Preparer Regulation

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National Taxpayer Advocate Nina E. Olson, head of the Taxpayer Advocate Service.

the IRS in many respects has had an extremely successful year.

Washignton, D.C. (PRWEB) January 6, 2010

National Taxpayer Advocate (NTA) Nina E. Olson today released her 2009 Annual Report to Congress, warning that increased demands on the IRS have eroded the agency's ability to meet taxpayer service needs and expressing concern that IRS collection practices are harming financially struggling taxpayers without producing significant revenue gains.

In the preface to the report, Ms. Olson, who heads the Taxpayer Advocate Service, noted that she is required by statute to identify taxpayer problems, but she wrote that "the IRS in many respects has had an extremely successful year." She cited, in particular, the IRS's success in implementing significant legislative changes designed to stimulate the economy in the midst of the filing season.

Among the key issues and themes identified in this year's report:

• Telephone Service. The report designates the IRS's declining ability to answer telephone calls as the most serious problem facing taxpayers. "The IRS is planning to be unable to answer about three of every 10 calls it receives," Olson said. "This level of service is unacceptable."
• Examination and Collection Issues. The report contains a detailed assessment of IRS examination and collection practices, concluding that many practices have been developed piecemeal and that the IRS lacks an effective overarching strategy to maximize voluntary compliance.
• Data Concerns. The report expresses concern that the IRS does not maintain sufficient reliable data to assess the effectiveness of its collection practices in several respects.
• Preparer Regulation. The report praises the IRS for moving ahead with plans to regulate federal income tax preparers.
• Rethinking the "Pay Refunds First, Verify Eligibility Later" Approach to Tax Returns Processing. Under current procedures, the IRS processes income tax returns before it processes most information returns, including Forms W-2, Wage and Tax Statement, and Forms 1099, which report interest, dividends, and other payments.
• Running Social Programs through the Tax System. Volume 2 of the report contains an analysis of social benefits provided through the tax code, with an emphasis on refundable credits.

About the Taxpayer Advocate Service
The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels or who believe that an IRS system or procedure is not working as it should. If you believe you are eligible for TAS assistance, you can reach TAS by calling the TAS toll-free case intake line at 1-877-777-4778 or TTY/TDD 1-800-829-4059. For more information, go to http://www.irs.gov/advocate.

Stay Connected
You can stay connected with the Taxpayer Advocate Service by becoming a TAS Facebook fan, subscribing to the TAS YouTube channel or following @YourVoiceAtIRS on Twitter. Taxpayers can learn more about their rights and responsibilities by visiting TAS's online toolkit: http://www.taxtoolkit.irs.gov.

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For TAS News & Information, visit http://www.taspresskit.irs.gov.

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