Taxpayer Advocate

Due to the current budget situation, including the sequester, all IRS and TAS offices will be closed on May 24, June 14, July 5, July 22 and Aug. 30, 2013. Tax-filing and payment deadlines will remain the same. More information about the impact of the shutdown is available on IRS.gov. 

Some preparers made appointments to take the test to become a registered return preparer, and paid the required fee. Since a U.S. District Court issued an injunction stopping the testing, the IRS is refunding those fees. Learn more about this news and related information on the Registered Tax Return Preparer Test page of the Taxpayer Advocate Service (TAS) Tax Toolkit.

When a taxpayer whose return was being delayed by the IRS was facing a possible repossession of his vehicle, TAS stepped in to help. See how his TAS case advocate saved the day on the on the Success Stories page of the Tax Toolkit.

Each year, taxpayers hire paid practitioners to prepare and file nearly 80 million individual tax returns, due to the overwhelming complexity of the tax code. Efforts by the IRS and Treasury to regulate preparers were halted when a U.S. district court found, in the Loving v. IRS case, that Treasury lacked authority to issue such standards. The National Taxpayer Advocate believes the district court’s decision in this case is based in part on an outdated understanding of return preparation and filing. In a recent Tax Notes Special Report she makes a strong case for preparer regulation. Read the full report on the Tax Toolkit.

TAS case advocates assist qualifying taxpayers nationwide in resolving problems with the IRS. Identity theft was the most common issue in TAS casework during fiscal year 2012 (10/1/11 – 9/30/12) and rose 61 percent over the last fiscal year. TAS also found an increasing number of taxpayers were defrauded by tax preparers. Learn more about TAS Case Advocacy on the Taxpayer Advocate Service (TAS) Tax Toolkit. 

In her recent testimony before Congress, National Taxpayer Advocate (NTA) Nina Olson notes the IRS could only answer 57 percent of calls on tax day – an “F” in any grading book. Learn more about IRS budget issues and the NTA’s recommendations in her testimony before Congress on the Taxpayer Advocate Service’s Tax Toolkit.

TAS received nearly 220,000 new cases in FY2012. In addition, identity theft-related cases rose 97 percent. Learn more about TAS’s mission and work on the Who We Are page of the Tax Toolkit. In addition, learn about the recent improvements to the IRS’s online Preparer Tax Identification Number (PTIN) system on the Renewing or Applying for a PTIN page.

In a recent interview on Federal News Radio, National Taxpayer Advocate Nina Olson outlines the recent dramatic increase in tax-related identity theft, discusses how TAS and the IRS are working to help victims and the proposed new civil penalties for those who commit identity theft. In addition, new tax reform comments submitted by members of the public are now available on the Tax Reform Suggestions page of the Tax Toolkit.  

National Taxpayer Advocate Nina Olson testified before the U.S. Senate Finance Committee on April 16 about several key tax issues, including tax fraud, tax identity theft and tax reform. Read her testimony on the Taxpayer Advocate Service’s (TAS) Tax Toolkit.

Each year, TAS participates in the IRS Nationwide Tax Forums, a three-day series of tax education and networking conferences for tax professionals. Learn about registration, dates and locations for the 2013 Forums on the TAS at the IRS Nationwide Tax Forums page on the Taxpayer Advocate Service’s (TAS) Tax Toolkit. In addition, all enrolled agent renewal applications for SSNs ending in 0, 1, 2 or 3 submitted by Jan. 31, 2013, have been processed and new renewal cards should be received within 10 days. More information about the PTIN system is available in the Tax Preparer Regulation section. 

The Low Income Taxpayer Clinic (LITC) Program, administered by TAS, has issued its first program report and related infographic. The report summarizes how clinics assist thousands of low income taxpayers through pro bono representation, education and advocacy efforts. Learn more about LITCs on the Low Income Taxpayer Clinics page of the Taxpayer Advocate Service’s (TAS) Tax Toolkit.

Learn how the sequestration cuts will reduce the refundable portion of the Small Business Health Care Tax Credit for some small, tax-exempt employers, and access updated information about the 2012 Earned Income Tax Credit (EITC) on the Taxpayer Advocate Service (TAS) Tax Toolkit. In addition, read new tax reform suggestions submitted by members of the public on the Tax Reform Suggestion Box page.

New suggestions from taxpayers regarding ways to reform the tax system are available on the Tax Reform Suggestion Box page of the Taxpayer Advocate Service (TAS) Tax Toolkit. Visit this page to read various taxpayers’ thoughts on reform and submit your own ideas.

New tax reform suggestions submitted by members of the public are available on the Tax Reform Suggestion Box page of the Taxpayer Advocate Service (TAS) Tax Toolkit. Visit this page to read other taxpayer perspectives and submit your own ideas about tax reform. 

 

On Jan. 18, 2013, the U.S. District Court of the District of Columbia issued an injunction to keep the IRS from enforcing regulatory requirements for tax return preparers. In accordance with this order, tax return preparers covered by this program are not required to complete competency testing or secure continuing education. The ruling does not affect the regulatory practice requirements for CPAs, attorneys, enrolled agents, enrolled retirement plan agents or enrolled actuaries.    On Feb. 1, 2013, the court released a modified order clarifying that all paid tax return preparers must still obtain a PTIN. Following this clarification, the IRS has reopened the PTIN system. Learn the specifics about what this ruling means for tax professionals on the Tax Preparer Regulation page of the Taxpayer Advocate Service’s (TAS) Tax Toolkit.  

The IRS recently announced that taxpayers using Form 8863, Education Credits, can begin filing their tax returns for processing in mid-February. Form 8863 is used to claim two higher education credits – the American Opportunity Tax Credit and the Lifetime Learning Credit. Learn more about tax credits available to you on the Taxpayer Advocate Service (TAS)’s Tax Toolkit.

National Taxpayer Advocate Nina Olson released her 2012 Annual Report to Congress on Jan. 9, 2013. The report identifies the most serious problems facing taxpayers today, such as the complexity of the U.S. tax code, reduced IRS funding, and the rise in tax-related identity theft, and provides the IRS and highest levels of government with recommendations for resolving them. For more information and access to the full report, visit the 2012 Annual Report to Congress site.

A new tool is available that helps small businesses determine whether they’re eligible for the Small Business Health Care Tax Credit and if so, estimate the amount they could receive. Visit the Small Business Health Care Tax Credit Estimator for more information.

In addition, please note, if you receive the Tax Toolkit RSS Feed via Feed My Inbox, you will need to take action to continue receiving these updates, as Feed My Inbox is shutting down in early January. Visit the RSS Feed page for instructions.

NTA Nina Olson appeared on C-SPAN and discussed the “fiscal cliff” and its potential impact on taxes on Dec. 14, 2012. A link to the video is now available on the home page of the Taxpayer Advocate Service’s Tax Toolkit.

Would you like to lead a team of dedicated people, protecting taxpayer rights and making a difference in the lives of thousands of Americans each year? The Taxpayer Advocate Service (TAS) is looking for an Area Director, based in Manhattan, to manage seven of our local offices. Learn more about this position or apply for this position via the Area Director job listing.