Office of the Taxpayer Advocate

Last updated
Office of the Taxpayer Advocate
TASLogo Black CMYK 300dpi TASLogo-e1603980641534.png
Agency overview
Headquarters Internal Revenue Service Building
1111 Constitution Ave., NW
Washington, D.C. 20224
United States
Employees1,683 (2020) [1]
Annual budget$222 million (2020) [1]
Agency executives
  • Erin M. Collins, National Taxpayer Advocate
  • Kim S. Stewart, Deputy National Taxpayer Advocate
Parent agency Internal Revenue Service
Website www.taxpayeradvocate.irs.gov

The Office of the Taxpayer Advocate, also called the Taxpayer Advocate Service (TAS), is an office within the Internal Revenue Service (IRS) of the U.S. Department of the Treasury, reporting directly to the Commissioner of Internal Revenue. [2] The office is under the supervision and direction of the National Taxpayer Advocate, who is appointed by the Secretary of Treasury.

Contents

History

Established in 1996, the Office of the Taxpayer Advocate has its origins in other Internal Revenue Service programs, such as the Taxpayer Service Program (formalized in 1963) [3] and Problem Resolution Program (established in 1977). [4] On the recommendation of the House Government Operations Committee, the Taxpayer Ombudsman was established within the Office of the IRS Commissioner in 1979, reporting directly to the Commissioner of Internal Revenue. [5] In 1984, the problem resolution offices (PRO) consisted of 80 full time employees and was headed by George A. O'Hanlon, the IRS ombudsman at the time. [6] [7] Commentators called for expanding the number of ombudsman as part of wider criticism of how the IRS was operating. [4] The 1988 Taxpayer Bill of rights gave the Ombudsman additional authority to intervene and overturn IRS decisions in certain cases. [8]

The position of Taxpayer Advocate was created under the Taxpayer Bill of Rights 2, an act of the United States Congress which became law on July 30, 1996. The office replaced the previous Office of the Ombudsman within the IRS. [9] The Taxpayer Advocate was initially appointed by the IRS commissioner until the Internal Revenue Service Restructuring and Reform Act of 1998 transferred appointment authority to the United States Secretary of the Treasury.

Responsibilities

Individual case advocacy

The TAS consists of approximately 1,800 employees. About 1,400 of these are Case Advocates, who personally assist taxpayers in resolving their problems with the IRS. Taxpayers may qualify for personal assistance from TAS if they are experiencing economic harm or significant cost (including fees for professional representation) as a result of their tax issue, have experienced a delay of more than 30 days in resolving their issue, or have not received a response or resolution by the date promised by the IRS. [10]

Cases are handled by a Local Taxpayer Advocate office located in each US state, the District of Columbia, and Puerto Rico. [11] These offices are contacted directly by taxpayers, and also receive cases referred by the IRS or Members of Congress.

The National Taxpayer Advocate may, upon application from a taxpayer, issue a Taxpayer Assistance Order (TAO) if the Advocate determines that the taxpayer is suffering (or is about to suffer) a "significant hardship" resulting from the way the U.S. Federal tax law is being administered, or if the taxpayer meets other prescribed requirements. [12] [13] The TAO may require the IRS to release property that has been levied, or to cease an action, or to take legally permitted action, or to refrain from taking any action against the taxpayer, under various provisions of the tax law. [14]

Systemic advocacy

In addition, the TAS identifies systemic problems that exist within the Internal Revenue Service and, to the extent possible, propose changes in the administrative practices and identify potential legislative changes which may be appropriate to mitigate such problems. [15] These observations and proposals are presented to Congress each year in the National Taxpayer Advocate's "Annual Report to Congress". [10]

Leadership

The National Taxpayer Advocate is the head of the Office of the Taxpayer Advocate, is appointed by the Secretary of Treasury, and reports directly to the Commissioner of Internal Revenue. [15] The Advocate acts as an ombudsman for the taxpayer. In addition to the duties as the head of the office, the Advocate is responsible for submitting annual reports on objectives and recommendations to the Committee on Ways and Means of the United States House of Representatives and the Committee on Finance of the United States Senate. [15] The reports are submitted without any prior review or comment from the Commissioner, the Secretary of the Treasury, any other officer or employee of the Department of the Treasury, or the Office of Management and Budget. [15]

Taxpayer ombudsman/advocate
NameTerm startTerm end
Harold M. Browning [16] January 14, 1980
George A. O'Hanlon1983
Damon O. HolmesDec 6, 1987Feb 1993
Lee R. Monks [17] June 19931998
W. Val Oveson [18] 1998October 2000
Henry O. Lamar, Jr. (acting)
Nina E. Olson [19] January 2001July 31, 2019
Bridget T. Roberts (acting) [20] July 31, 2019March 30, 2020
Erin M. Collins [21] [22] March 30, 2020-

Criticism

The organization has been criticized as redundant, taking over the role of gathering accurate information on the IRS that was previously handled by the General Accounting Office. Despite some degree of independence from the IRS, the taxpayer advocate office is not fully independent, and still has incentives to avoid releasing damaging information. Finally, the taxpayer advocate may be overly focused on reacting to problems rather than preventing them in the first place. [23] [24]

See also

Related Research Articles

<span class="mw-page-title-main">United States Tax Court</span> United States federal court dealing with tax matters

The United States Tax Court is a federal trial court of record established by Congress under Article I of the U.S. Constitution, section 8 of which provides that the Congress has the power to "constitute Tribunals inferior to the supreme Court". The Tax Court specializes in adjudicating disputes over federal income tax, generally prior to the time at which formal tax assessments are made by the Internal Revenue Service.

<span class="mw-page-title-main">Commissioner of Internal Revenue</span> Government official that leads the US Internal Revenue Service

The Commissioner of Internal Revenue is the head of the Internal Revenue Service (IRS), an agency within the United States Department of the Treasury.

<span class="mw-page-title-main">Income tax in the United States</span> Form of taxation in the United States

The United States federal government and most state governments impose an income tax. They are determined by applying a tax rate, which may increase as income increases, to taxable income, which is the total income less allowable deductions. Income is broadly defined. Individuals and corporations are directly taxable, and estates and trusts may be taxable on undistributed income. Partnerships are not taxed, but their partners are taxed on their shares of partnership income. Residents and citizens are taxed on worldwide income, while nonresidents are taxed only on income within the jurisdiction. Several types of credits reduce tax, and some types of credits may exceed tax before credits. An Alternative Minimum Tax (AMT) applies at the federal and some state levels.

<span class="mw-page-title-main">Internal Revenue Service Restructuring and Reform Act of 1998</span>

The Internal Revenue Service Restructuring and Reform Act of 1998, also known as Taxpayer Bill of Rights III, resulted from hearings held by the United States Congress in 1996 and 1997. The Act included numerous amendments to the Internal Revenue Code of 1986. The bill was passed in the Senate unanimously, and was seen as a major reform of the Internal Revenue Service.

<span class="mw-page-title-main">Taxpayer Bill of Rights 2</span>

The Taxpayer Bill of Rights 2 is an Act of Congress. Among other things, it created the Office of the Taxpayer Advocate.

Tax preparation is the process of preparing tax returns, often income tax returns, often for a person other than the taxpayer, and generally for compensation. Tax preparation may be done by the taxpayer with or without the help of tax preparation software and online services. Tax preparation may also be done by a licensed professional such as an attorney, certified public accountant or enrolled agent, or by an unlicensed tax preparation business. Because United States income tax laws are considered to be complicated, many taxpayers seek outside assistance with taxes.

Tax protesters in the United States have advanced a number of arguments asserting that the assessment and collection of the federal income tax violates statutes enacted by the United States Congress and signed into law by the President. Such arguments generally claim that certain statutes fail to create a duty to pay taxes, that such statutes do not impose the income tax on wages or other types of income claimed by the tax protesters, or that provisions within a given statute exempt the tax protesters from a duty to pay.

The IRS Whistleblower Office is a branch of the United States Internal Revenue Service that will "process tips received from individuals, who spot tax problems in their workplace, while conducting day-to-day personal business or anywhere else they may be encountered." Tipsters should use IRS Form 211 to make a claim.

<span class="mw-page-title-main">Nina E. Olson</span>

Nina E. Olson is a former United States Taxpayer Advocate, and former head of the Office of the Taxpayer Advocate, a government office dedicated to helping taxpayers solve their problems with the Internal Revenue Service. From 1975 to 1991, she was a tax preparer in Chapel Hill, North Carolina.

A rate schedule is a chart that helps United States taxpayers determine their federal income tax for a particular year. Another name for "rate schedule" is "rate table".

A tax levy under United States federal law is an administrative action by the Internal Revenue Service (IRS) under statutory authority, generally without going to court, to seize property to satisfy a tax liability. The levy "includes the power of distraint and seizure by any means". The general rule is that no court permission is required for the IRS to execute a tax levy.

A tax protester is someone who refuses to pay a tax claiming that the tax laws are unconstitutional or otherwise invalid. Tax protesters are different from tax resisters, who refuse to pay taxes as a protest against a government or its policies, or a moral opposition to taxation in general, not out of a belief that the tax law itself is invalid. The United States has a large and organized culture of people who espouse such theories. Tax protesters also exist in other countries.

<span class="mw-page-title-main">Internal Revenue Service</span> Revenue service of the United States federal government

The Internal Revenue Service (IRS) is the revenue service for the United States federal government, which is responsible for collecting U.S. federal taxes and administering the Internal Revenue Code, the main body of the federal statutory tax law. It is an agency of the Department of the Treasury and led by the Commissioner of Internal Revenue, who is appointed to a five-year term by the President of the United States. The duties of the IRS include providing tax assistance to taxpayers; pursuing and resolving instances of erroneous or fraudulent tax filings; and overseeing various benefits programs, including the Affordable Care Act.

<span class="mw-page-title-main">Treasury Inspector General for Tax Administration</span>

The Treasury Inspector General for Tax Administration (TIGTA) is an office in the United States Federal government. It was established in January 1999 in accordance with the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 98) to provide independent oversight of Internal Revenue Service (IRS) activities. As mandated by RRA 98, TIGTA assumed most of the responsibilities of the IRS' former Inspection Service.

Tax protesters in the United States advance a number of administrative arguments asserting that the assessment and collection of the federal income tax violates regulations enacted by responsible agencies –primarily the Internal Revenue Service (IRS)– tasked with carrying out the statutes enacted by the United States Congress and signed into law by the President. Such arguments generally include claims that the administrative agency fails to create a duty to pay taxes, or that its operation conflicts with some other law, or that the agency is not authorized by statute to assess or collect income taxes, to seize assets to satisfy tax claims, or to penalize persons who fail to file a return or pay the tax.

In the United States, there is no unified federal ombudsman service. The role of handling complaints against federal authorities has to some extent been unofficially incorporated into the role of the US Member of Congress. This informal job has become increasingly time-consuming. It is subject to criticism on the grounds that it interferes with a legislator's primary duty, namely to read and be knowledgeable about a bill before casting his or her vote.

The IRS Return Preparer Initiative was an effort by the Internal Revenue Service (IRS) to regulate the tax return preparation industry in the United States. The purpose of the initiative is to improve taxpayer compliance and service by setting professional standards for and providing support to the tax preparation industry. Starting January 1, 2011 and, until the program was suspended in January 2013, the initiative required all paid federal tax return preparers to register with the IRS and to obtain an identification number, called a Preparer Tax Identification Number (PTIN). The multi-year phase-in effort called for certain paid tax return preparers to pass a competency test and to take annual continuing education courses. The ethics provisions found in Treasury Department's Circular 230 were extended to all paid tax return preparers. Preparers who have their PTINs, pass the test and complete education credits were to have a new designation: Registered Tax Return Preparer.

<span class="mw-page-title-main">Foreign Account Tax Compliance Act</span> 2010 U.S. tax law

The Foreign Account Tax Compliance Act (FATCA) is a 2010 U.S. federal law requiring all non-U.S. foreign financial institutions (FFIs) to search their records for customers with indicia of a connection to the U.S., including indications in records of birth or prior residency in the U.S., or the like, and to report such assets and identities of such persons to the United States Department of the Treasury. FATCA also requires such persons to report their non-U.S. financial assets annually to the Internal Revenue Service (IRS) on form 8938, which is in addition to the older and further redundant requirement to report them annually to the Financial Crimes Enforcement Network (FinCEN) on form 114. Like U.S. income tax law, FATCA applies to U.S. residents and also to U.S. citizens and green card holders residing in other countries.

In the United States, an income tax audit is the examination of a business or individual tax return by the Internal Revenue Service (IRS) or state tax authority. The IRS and various state revenue departments use the terms audit, examination, review, and notice to describe various aspects of enforcement and administration of the tax laws.

<span class="mw-page-title-main">Taxpayer First Act</span> 2019 United States law reforming the IRS

The Taxpayer First Act is a law that makes significant reforms to the Internal Revenue Service (IRS).

References

  1. 1 2 U.S. Government Accountability Office (2021-06-16). "Taxpayer Advocate Service: Opportunities Exist to Improve Reports to Congress" (PDF). p. 13. Retrieved 2022-03-26.
  2. ↑ 26 U.S.C.   § 7803, subsec. (c).
  3. ↑ William J. Anderson (1982-03-24). "Statement of William J. Anderson, Director General Government Division Before the Subcommittee on Oversight of Government Management Committee on Governmental Affairs United States Senate on The Status of IRS' Taxpayer Service Program" (PDF). United States Government Accountability office. Retrieved 2022-04-18.
  4. 1 2 Scanberg, Sydney H. (1985-03-30). "Opinion - New York; The I.R.S. image problem". The New York Times. Retrieved 2022-04-18.
  5. ↑ Bryan E. Gates, EA (January 27, 2002). "Resolving Taxpayer Problems - Resolve them, one way or another, but Resolve Them!" (PDF). Department of the Treasury. Testimony IRS Oversight Board. Retrieved 2022-03-26.
  6. ↑ Deborah Rankin (1984-09-23). "Personal finance; Dealing with the I.R.S.'s mistakes". The New York Times. Retrieved 2022-03-27.
  7. ↑ Sam Zagoria (1984-10-10). "Running Interference". Washington Post. Retrieved 2022-03-27.
  8. ↑ Eric Pianin (1992-04-15). "IRS TO THE ERRANT BUT HONEST: NO MORE MR. TOUGH GUY". Washington Post. Retrieved 2022-03-27.
  9. ↑ Pub. L. Tooltip Public Law (United States)  104–168 (text) (PDF) , 110  Stat.   1452 , enacted July 30, 1996, §101(b)(1)
  10. 1 2 "Taxpayer Advocate | Internal Revenue Service".
  11. ↑ "Local Taxpayer Advocate". IRS. Retrieved 2022-03-27.
  12. ↑ 26 U.S.C.   § 7811, subsec. (a)(1).
  13. ↑ Internal Revenue Manual, IRM 13.1.1.1.1, Internal Revenue Service, U.S. Dep't of the Treasury (Aug. 21, 2000).
  14. ↑ 26 U.S.C.   § 7811, subsec. (b).
  15. 1 2 3 4 Pub. L. Tooltip Public Law (United States)  104–168 (text) (PDF) , 110  Stat.   1452 , enacted July 30, 1996, §101(a)
  16. ↑ "IRS Historical Fact Book: A Chronology 1646-1992" (PDF). p. 216.
  17. ↑ M., Jacob (1998-08-11). "IRS Taps Oveson, Utah's Tax Chief, To Be Agency's Taxpayer Advocate". WSJ. Retrieved 2022-03-27.
  18. ↑ Lee Benson (2016-02-15). "A still youthful Val Oveson takes a look back". Desert News. Retrieved 2020-08-30.
  19. ↑ The Associated Press (2020-02-02). "Former national taxpayer advocate talks about your rights". WTOP. Retrieved 2020-08-31.
  20. ↑ Kelly Phillips Erb (2020-02-27). "IRS Names New National Taxpayer Advocate". Forbes. Retrieved 2020-08-30.
  21. ↑ "Our Leadership". Taxpayer Advocate Service. Retrieved 2020-08-30.
  22. ↑ "New IRS Taxpayer Advocate Takes Office". CPA Practice Advisor. 2020-03-27. Retrieved 2020-08-30.
  23. ↑ Conoboy, Heather B. (2000). "A Wrong Step in the Right Direction: The National Taxpayer Advocate and the 1998 IRS Restructuring and Reform Act". William & Mary Law Review. 41 (4): 1401.
  24. ↑ Meland, Creighton R. (1988). "Omnibus Taxpayers' Bill of Rights Act: Taxpayers' Remedy or Political Placebo?". Michigan Law Review. 86 (7): 1787. doi:10.2307/1289104. JSTOR   1289104.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.