Taxpayer advocate presents annual wish list.National Taxpayer Advocate Nina Olson presented her annual report to Congress in January recommending dozens of issues for the Ins and Congress to resolve this year. The report analyzes issues in 26 categories, including collection and tax services, privacy protection and tax preparer standards. Late tax-law changes. Olson said paper and electronic fliers may not be claiming deductions because Form 1040 and its instructions are often finalized See finalization. after tax preparation software packages have been completed. She recommended the Ins create a formal process to update Congress' taxwriting committees, starting June 30, about how tax filing might be slowed by late changes to the Tax Code. Tax gap. The report recommended the Ins establish a "cash economy program office" to improve compliance in the cash economy. The Ins has already rejected this suggestion. The report said the cash economy accounts for about $100 billion of the estimated annual tax gap of between $290 billion and $345 billion, as determined by a 2001 Ins analysis. Private debt collection. Olson called for repeal The Annulment or abrogation of a previously existing statute by the enactment of a later law that revokes the former law. The revocation of the law can either be done through an express repeal of the use of private debt collection agencies to collect back taxes. She estimated the $7.35 million appropriated to this program in fiscal 2008 would result in $30 million in collections, compared with $146 million that could be collected through the IRS's Automated Collection System. Apology apology [Gr.,=defense], literary work that defends, justifies, or clarifies an author's ideas or point of view. Unlike the ordinary use of the word, the literary use neither implies that wrong has been done nor expresses regret. payments. Taxpayers should be given nontaxable "apology payments" of between $100 and $1,000 if they suffer undue burdens or excessive expenses caused by Ins mistakes or inaction in·ac·tion n. Lack or absence of action. inaction Noun lack of action; inertia Noun 1. . Circular 230. The report called on the Ins Office of Professional Responsibility to clarify some aspects of Circular 230, particularly whether tax advice is a "covered opinion;' what constitutes "willful Intentional; not accidental; voluntary; designed. There is no precise definition of the term willful because its meaning largely depends on the context in which it appears. " conduct, and whether a statute of limitations A type of federal or state law that restricts the time within which legal proceedings may be brought. Statutes of limitations, which date back to early Roman Law, are a fundamental part of European and U.S. law. applies to violations. Tax preparer standards. The report highlighted the risk created by heightened preparer standards of "more likely than not" under IRC (Internet Relay Chat) Computer conferencing on the Internet. There are hundreds of IRC channels on numerous subjects that are hosted on IRC servers around the world. After joining a channel, your messages are broadcast to everyone listening to that channel. [section] 6694. This change gives a preparer the incentive to choose a course that protects the preparer's own interests rather than the taxpayer's. Tax strategy patents. Olson also called on Congress to pass pending legislation banning tax strategy patents or barring their enforcement (see "On Equal Terms," page 68). If Congress does not outlaw such patents, it should require the U.S. Patent and Trademark Office to refer them to the Ins to review whether their strategies are abusive Tending to deceive; practicing abuse; prone to ill-treat by coarse, insulting words or harmful acts. Using ill treatment; injurious, improper, hurtful, offensive, reproachful. . Most-litigated issues. Congress should expand the spousal spou·sal adj. 1. Of or relating to marriage; nuptial. 2. Of or relating to a spouse. n. Marriage; nuptials. Often used in the plural. protections of sections 66 and 6015. The proposed changes would allow defenses under those sections to be raised in a collections action in district court. Current law allows the defenses in district court only in a refund action. Joint and several liability under section 6015 was the ninth most-litigated issue in the past year. The third most-litigated issue involved summons summons: see procedure. summons In law, written notification that one is required to appear in court. In civil (noncriminal) cases, it notifies a defendant that he or she must appear and defend (e.g. enforcement under sections 7602, 7604 and ?609. The report listed several cases to illustrate the Service's more aggressive stand in such matters, including the recent Textron case, in which a lower court granted work product protection to third-party workpapers (see "Tax Matters: Work Product Stands Up to Ins Summons," JofA, Nov. 07, page 80). The report is available at www.irs. gov/advocate/article/0,,id=177301,0 0.html. |
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