Did you know the IRS has an internal Taxpayer Advocate’s office, whose mission is to review processes and recommend ways to improve tax laws and systems? It’s good to know there are some serious internal reviews happening, and we hope they’ll lead to improvements.
In a recently released report, the advocates identified areas for improvement within taxpayer services, debt collection processes, and how the agency evaluates living expenses of certain groups of taxpayers.
While fraud and identity theft detection has improved, there’s an issue with the system generating too many false positives, which leads to additional processing work and delayed tax return refunds.
The report also outlines solutions, grouped into nine areas. First and foremost, the advocacy office recommends that the lengthy tax code be simplified. At its current 11,000 single-space pages, there’s plenty of room for improvement! Other recommendations center around consolidating incentives for educational and retirement savings, and streamlining tax violation penalties.
See full article on Bloomberg here: The IRS’s Annual Report Card Is In, and It Isn’t Pretty.