In a rare demonstration of results from a bipartisan effort, Senator Mike Crapo, the Republican chairman of the Senate Finance Committee, and Democratic Senator Ron Wyden, the committee’s ranking member, recently released a draft of the Taxpayer Assistance and Service (TAS) Act. If passed, this legislation would improve the taxpayer experience by “making an array of common-sense fixes to Internal Revenue Service (IRS) procedure and administration,” according to a press release from the Committee on Finance.
Expansive TAS Act Brings Greater Efficiency and Better Options Across Multiple Areas
Here are some of the 68 provisions included in the 163-page draft bill:
Tax Administration and Customer Service – Improvements in this area include easy online access for taxpayers to information about refund status, tax returns, notices and more; the requirement, when a notice is triggered about an error on a tax return, for the IRS to provide the taxpayer with specific information, such as the line on the tax return where the issue is located and the code section it relates to; and policy changes and additional services to help low-income taxpayers and those facing economic hardship who owe taxes.
Office of the Taxpayer Advocate – Although housed within the IRS, this service is an independent organization with a mission to help and be a voice for taxpayers facing tax-related financial difficulty. The TAS Act would grant the office greater power in its personnel matters, including the authority to hire attorneys directly, and it would strengthen requirements for the IRS to provide requested records.
Tax Return Preparers – The TAS Act would more aggressively address wrongdoing by tax return preparers who improperly prepare tax returns, misappropriate funds, or misuse or fail to furnish a valid Preparer Tax Identification Number (PTIN); some offenses would be classified as felonies punishable by fines and incarceration. It would also expand the criteria for becoming a non-credentialed preparer to include requirements for continuing education and more background information.
Small Businesses – The TAS Act would give independent contractors the option to have taxes withheld from their earnings; extend the time for making S corporation elections; allow taxpayers who file for extension to file their tax return also have an extension on the payment deadline; and require the IRS to advise a taxpayer of information it plans to request from a third party before doing so, allowing the taxpayer the opportunity to provide the information themselves.
Members of the public can email feedback on the discussion draft to discussiondraft@finance.senate.gov until March 31, 2025. If the TAS Act becomes law, we will offer a series of blog posts on its provisions.
If you have questions about the Taxpayer Assistance and Service Act, contact the experts at Highland Tax Resolution. We help taxpayers understand the best way to work with the IRS. We do a financial review to ensure we’re working in your best interest, and we keep clients updated with regular communication.