Making the IRS work better

By U.S. Sen. Mike Crapo
R-Idaho

One of my most important responsibilities is to assist Idahoans in navigating the federal bureaucracy. From helping veterans get the benefits they earned to expediting passport applications and resolving Medicaid enrollment problems, my staff and I work every day to ensure the federal government effectively serves all Idahoans. 

Frequently, people contact my office for assistance with federal taxes. Like many other hardworking Americans every year, these constituents file their returns, wait for refunds and respond to notices, only to find the system is more complicated and less responsive than it should be.

For years, my colleagues and I have undertaken bipartisan efforts to turn taxpayers’ recurring frustrations into practical reforms that make the Internal Revenue Service (IRS) work better for the American people. That work produced the Taxpayer Assistance and Service (TAS) Act, a bipartisan bill containing more than 60 common-sense reforms that will improve the taxpayer experience and modernize the IRS. In July, the Senate Finance Committee, which I chair, advanced the TAS Act with an overwhelming bipartisan vote of 26-1.

That strong support reflects the bill’s commonsense goal: bringing the taxpaying process up to date. People shop, work and bank online; they should be able to manage their taxes online if they choose. The TAS Act requires the IRS to accept and process all returns electronically, helping taxpayers receive refunds faster. 

It also deems electronic payments and document submissions timely filed if they are submitted on the due date, just like postmarked paper filings. The bill also improves the online “Where’s my Refund?” tracker and expands online account services, allowing taxpayers to access six years of tax documents, including filed tax returns.

In addition, the bill addresses one of taxpayers’ biggest frustrations: long wait times to reach an IRS representative on the phone. It not only directs the IRS to offer a callback option on all major lines if a call goes unanswered for five minutes, but also requires it to set up a real-time dashboard showing call volume, estimated wait times and callback options.

Small businesses and independent contractors benefit as well. Unlike employees, who usually have taxes automatically withheld from their paychecks, independent contractors and gig economy workers generally must make estimated tax payments themselves. The TAS Act instead allows for voluntary withholding when the contractor and the payer agree. It also strengthens taxpayer protections by giving individuals an opportunity to avoid third-party requests for information that might unnecessarily damage their reputation or business.

Importantly for all taxpayers, the TAS Act bolsters the Office of the National Taxpayer Advocate (NTA), the independent voice for taxpayers within the IRS. It allows the NTA to hire attorneys who report directly to the NTA rather than the IRS and grants them access to the information needed to fulfill their duties. These changes will enhance the NTA’s ability to independently assist taxpayers and advise Congress.

These are just a few of the many taxpayer-focused reforms in the TAS Act. Americans are duty-bound to comply with the tax laws. The federal government has a corresponding duty to administer a transparent, efficient and fair tax system. The TAS Act would move us closer to that standard, and I look forward to getting this comprehensive, bipartisan bill to President Trump’s desk.