US Hearing On Improving IRS Appeals Process
On September 13, the US Ways and Means Oversight Subcommittee launched a hearing on improving the resolution process for taxpayer disputes and appeals with the Internal Revenue Service.
The hearing is said to be the fourth in a series of attempts to reform and improve the IRS appeals process.
“In a system of voluntary tax compliance, even with the simplest of tax codes – and ours is currently not one of those – there are bound to be disputes between taxpayers and the IRS,” said Subcommittee Chairman Vern Buchanan (R-FL). “What we hope to learn… is about the experience of those taxpayers involved in resolving disputes with the IRS and whether there are ways to improve the current process.”
Proposals include the creation of an independent Appeals function for the IRS, first suggested almost 20 years ago and revisited in 2015 when the right to appeal to such a forum was included in the Taxpayer Bill of Rights. “Ensuring the independence and availability of the administrative review process for taxpayer disputes remains a top priority of this Subcommittee,” said Buchanan. “In addition to being independent, dispute resolution options need to be accessible and efficient.”
Other suggestions include expanding the number of states that have permanent Hearing Officers, ensuring the independence of taxpayer conferences, and allowing taxpayers to request face-to-face conferences later in the process.
Ranking Member John Lewis (D-GA) highlighted recent budget cuts to the IRS, warning: “We cannot get blood from a turnip… Taxpayers will not get the level of service that they expect and deserve until we provide adequate funding to this agency.”
Since 2010, the IRS budget has been cut by almost USD1bn and, over the past three years, the budget for the IRS Appeals Office has fallen by 11 percent, with 24 percent fewer Hearings Officers being retained.
