www.qns.com I LIC COURIER I MAY 2018 43
TAX TIPS
Modernizing
the Internal
Revenue
Service
BY JOHN SAVIGNANO, CPA
Bipartisan ideas are rare on Capitol Hill these days, given the
current divided political climate.
But lawmakers seem to agree on the following:
e need to modernize the Revenue Service and make it decidedly
more taxpayer friendly.
Lots of changes are proposed in a House bill that is a discussion
dra for now and could change.
Start with an independent oce of appeals within IRS to resolve
controversies for most taxpayers. e appeals ocer would have to
give taxpayers access to their case les before the date of the
conference.
The title of the IRS head would change from
commissioner to administrator.
Turn to taxpayer service. e bill makes permanent IRS’s Free File
program, which provides free tax preparation soware for taxpayers
with specied incomes and electronically llable forms to be used by
any person to e-le federal returns. Low-incomers would not have to
pay a fee when seeking oers in compromise to settle their tax debts.
IRS is tasked with developing a customer service strategy.
Some proposals aect enforcement and collection. One would
prevent IRS from turning over to private debt collectors tax debts of
low-income individuals. Taxpayers would get timely notice when a
summons is issued to a third party, such as a bank or employer. And
controversial asset seizures would be reined in.
Ideas to curb fraudulent refunds and tax identity the are
included. All individuals could request a special ling password to
use before they le returns. at way, if a return comes in with a
ler’s tax ID number but without the password, IRS could ag the
return and stop any refund. Currently, identity protection numbers
are given only to taxpayers whom IRS determines to be at rusk for tax
identity the. Identity the victims would be assigned an IRS
employee to track their case.
Many more returns would have to be electronically led under
the bill. e 250-return e-ling mandate would be reduced to 10 over
a period of years. All exempt organizations would have to e-le their
annual Form 990 returns, except that smaller groups would get an
additional two years to comply.
IRS must have online taxpayer accounts in place by the end of
2023. is proposal appears to be similar to what the agency
envisions for its future. It would give taxpayers and preparers the
ability to access tax accounts electronically to see if there is a balance
due, and to check tax history, make payments, x returns, share
documents, verify changes made by IRS and communicate with the
agency.
It’s interesting to note what’s not included: Regulation of
unenrolled preparers. And an idea oated in the past to restructure
the Service into three distinct units. e bill would have IRS develop
its own organizational plan and submit it to Congress.
John Savignano is a partner with Savignano Accountants & Advisors
located at 47-46 Vernon Blvd., Second Floor, in Long Island City. If
you have any questions or require additional information, please call
John at 718-707-0955.
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