AICPA supports Senate discussion draft to help taxpayers, preparers

The AICPA said it supports the bipartisan Taxpayer Assistance and Service (TAS) Act discussion draft that two senators released Thursday and especially backs 13 of the 65 provisions designed to reduce burdens on taxpayers and tax preparers.

The discussion draft, released by Sens. Mike Crapo, R-Idaho, chair of the Senate Finance Committee, and Ron Wyden, D-Ore., ranking Finance Committee member, reflects nonpartisan proposals recommended by the national taxpayer advocate (NTA) along with stand-alone bills that members of Congress have introduced, the senators said in a news release.

The draft legislation is “designed to facilitate communication between the agency and taxpayers, streamline processes for tax compliance and disputes, and ensure taxpayers have access to timely expert assistance,” Crapo and Wyden said.

NTA Erin Collins said in the Senate release that the bill “would significantly strengthen taxpayer rights in nearly every facet of tax administration.”

The AICPA, in a news release, highlighted provisions that have its strongest support. Those provisions deal with tax filing by victims of disasters, electronic notices, and callback technology.

The AICPA mentioned 13 provisions:

• Sec. 101: Scanning and digitization of tax returns and correspondence;
• Sec. 102: Establishment of dashboard to inform taxpayers of backlogs and wait times;
• Sec. 103: Expansion of electronic access to information about refunds;
• Sec. 104: Expansion of callback technology and online accounts;
• Sec. 105: Improvement of notices of math or clerical error;
• Sec. 108: Individuals facing economic hardships informed of collection alternatives;
• Sec. 112: Postponement of certain deadlines by reason of disasters made applicable to limitation on credit or refund;
• Sec. 116: Modification of rules for postponing certain deadlines by reason of disaster;
• Sec. 405: Operations to assist taxpayers experiencing hardships during a lapse in appropriation;
• Sec. 504: Authority to deny, revoke, or suspend preparer tax identification numbers;
• Sec. 903: Quarterly installments for estimated income tax payments by individuals;
• Sec. 904: Establishment of a failure-to-pay penalty safe harbor for individuals; and
• Sec. 905: Extension of mailbox rule to electronic submissions and payments.

The discussion draft includes other policies that would:

• Streamline reviews of offers in compromise to facilitate taxpayers’ resolution of tax debts;

• Simplify foreign bank account report (FBAR) compliance so that fewer taxpayers will fail to file key forms;

• Clarify and expand Tax Court jurisdiction so that more taxpayers can pursue their claims in an appropriate venue;

• Expand the independence of the NTA from the IRS;

• Increase civil and criminal penalties on tax professionals who deliberately take actions to harm their clients;

• Expand taxpayer access to the IRS Independent Office of Appeals;

• Extend the mailbox rule to electronic submissions so that taxpayers have certainty their materials are submitted on time;

• Strengthen the IRS whistleblower program while protecting the confidentiality of taxpayer information; and
• Protect hostages from unfair tax processes and penalties.

A section-by-section breakdown of the legislation is available here.

Melanie Lauridsen, the AICPA’s vice president–Tax Policy & Advocacy, said the TAS Act, if passed, would be “instrumental in establishing a foundation that helps simplify some of the laborious tax-filing processes and allows taxpayers to better meet their tax obligations.”

No bill has been filed. Crapo and Wyden are seeking comments, which are due by March 31 and can be sent to discussiondraft@finance.senate.gov.

Tax season opened Monday with acting Commissioner Doug O’Donnell leading the IRS. The previous commissioner, Danny Werfel, resigned effective Jan. 20. President Donald Trump has nominated Billy Long, a former Missouri congressman, as commissioner.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.