36 THE QUEENS COURIER • MAY 3, 2018 FOR BREAKING NEWS VISIT WWW.QNS.COM
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:
The 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 draft for
now and could change.
Start with an independent office of
appeals within IRS to resolve controversies
for most taxpayers. The appeals officer
would have to give taxpayers access
to their case files before the date of the
conference.
The title of the IRS head would
change from commissioner
to administrator.
Turn to taxpayer service. The bill
makes permanent IRS’s Free File program,
which provides free tax preparation
software for taxpayers with specified
incomes and electronically fillable forms
to be used by any person to e-file federal
returns. Low-incomers would not have
to pay a fee when seeking offers in compromise
to settle their tax debts. IRS is
tasked with developing a customer service
strategy.
Call Now & End Your Tax Nightmare!
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Co-Author of the
best selling book
“Breaking the Tax Code”
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Salvatore P. Candela, EA, ATA, ABA
Enrolled Agent - Tax Advisor
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Some proposals affect 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 theft are included. All individuals
could request a special filing
password to use before they file returns.
That way, if a return comes in with a filer’s
tax ID number but without the password,
IRS could flag 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 theft. Identity theft victims
would be assigned an IRS employee
to track their case.
Many more returns would have to
be electronically filed under the bill.
The 250-return e-filing mandate would
be reduced to 10 over a period of years.
All exempt organizations would have
to e-file 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.
This 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, fix
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 floated in the past to
restructure the Service into three distinct
units. The 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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