News
Changes to the IRS administration under discussion
Jan 30, 2025 —The <a href="https://www.finance.senate.gov/ranking-members-news/crapo-wyden-issue-discussion-draft-to-improve-irs-administration"; target="_blank" rel="noopener noreferrer" data-link-type="web">United States Senate Committee on Finance has released a bipartisan discussion draft intended to improve Internal Revenue Service administration. You can read a copy of the <a href="https://www.finance.senate.gov/imo/media/doc/tax_admin_bill.pdf"; target="_blank" rel="noopener noreferrer" data-link-type="web">discussion draft here.
This draft bill has been several years in the making. It would significantly strengthen taxpayer rights. It includes policies that would:
- Require the IRS to improve "math error" notices so taxpayers can respond timely;
- Streamline review of offers-in-compromise to facilitate resolution of tax debts;
- Clarify and expand Tax Court jurisdiction;
- Expand the independence of the National Taxpayer Advocate (NTA) from the IRS;
- Increase civil and criminal penalties on tax professionals that deliberately take actions to harm clients;
- Expand taxpayer access to the IRS Independent Office of Appeals;
- Extend the "mailbox rule" to electronic submissions;
- Adopt reasonable standards and due process for issuing and revoking return preparer identification numbers (PTINs);
- Strengthen the IRS whistleblower program and further protect confidentiality of taxpayer information;
- Protect hostages from unfair tax processes and penalties.
A section-by-section of the legislation is available <a href="https://www.finance.senate.gov/imo/media/doc/tas_act_discussion_draft_section_by_section.pdf"; target="_blank" rel="noopener noreferrer" data-link-type="web">here. Comments on this discussion draft are requested by March 31, 2025, and can be sent to <a href="mailto:discussiondraft@finance.senate.gov" target="_blank" rel="noopener noreferrer" data-link-type="email">discussiondraft@finance.senate.gov. If you would like assistance crafting a response, please reach out to <a href="mailto:sadie@vtcpa.org" target="_blank" rel="noopener noreferrer" data-link-type="email">Sadie.
For your reference, the AICPA has endorsed numerous provisions in this draft. They will be working with Senators Crapo and Wyden and other stakeholders to forward the draft. For more on there position, click here.
