Creating a more friendly IRS From Identity Theft and More, Baytown TEXAS

The Internal Revenue Service (IRS) wants to be loved just like everyone else, or at least our federal legislators want taxpayers to like the IRS. It may seem like a stretch, but the 2019 First Act contributor takes a few steps in the right direction. Enacted on July 1, 2019, its aim is to make the IRS a more “taxpayer-friendly” entity and enforce the rights of some taxpayers. It addresses protection against identity theft.

Customer Service Tweaks and Improvements

The law obliges the Treasury Department to come up with a customer service plan for the IRS, as well as a plan to reorganize the IRS structure and submit them to congress by the end of 2020 fiscal year.

Some minor requirements were immediately put in place too. For example, the next time you make a phone call to the IRS and you are put on hold, you should hear a recording that addresses identity theft and tax scams, offering options for those who know or suspect that they may be victims.

And do not forget how frustrating it was trying to pay your taxes owed with a credit or debit card. It used to be that you had to go through an approved third party who would then help you pay to the IRS. The law makes correction to this. You will now be able to pay directly to the IRS with a credit or debit card but, for a fee.

Rehiring Fired Agents

IRS hiring practices have been modified also. The IRS is no longer permitted for employees to rehearse that they were terminated due to misconduct. The agency rehired literally hundreds of these employees in 2014 alone.

In addition, the law requires the IRS to notify any taxpayer, if an IRS employee is disciplined for actions related to his tax return, specifically the disclosure of information contained therein or the viewing of documents he is not entitled to see. It is not clear what the taxpayer can do about such a situation though. This new rule applies to employees of any other state or federal agency as well.

An Independent Appeals Office

The IRS may be making efforts to be a little friendly, but that doesn’t imply that the agency is going to look the other way when taxpayers default. The law also requires the IRS to have an independent Appeals Office to handle taxpayer disputes.

The purpose is to address issues without the need for litigation. An independent third party will make decisions, leaving the imposed court out.

Before you get involved in the appeals process, you will know what you are up against. The law requires the IRS to pay taxpayers with their case files in advance. However, this provision is not automatic. You have to make a formal request for your file. 

Tax Assistance Program Tweaks

The Voluntary Income Tax Assistance (VITA) program receives some attention, too. The law requires that the Department of the Treasury created a funnel cash grant matching program to aid tax preparation for low-income taxpayers and to enlighten the public about the availability of this aid. 

As for Taxpayer Assistance centers you can turn to for help, the IRS is not required to provide all taxpayers at 90 days in advance before closing any of them, and must tell taxpayers where they can go for assistance in turn

Other Refund Fraud and Identity Theft Measures

The Taxpayer law places restrictions on who outside the IRS has access to your tax and information return. The IRS is no longer permitted to disclose information on its tax return to any local, state or federal agency, or by its contractors, unless that entity has specific measures in place to protect that information.

Tax law has long prohibited the IRS from sharing its tax information with “other parties” in general, but the agency is authorized to disclose it to select entities, including state tax agencies, law enforcement and the Social Security administration. 

The 2019 Taxpayer Law requires IRS issue identification numbers (PINs) for taxpayers in an effort to combat taxes related to combating identity theft, and for contacting taxpayers if the agency is right to believe that their identities have been disrespected. You should make provisions for victims of identity theft with a single point of contact within the IRS for aid. 

PINs have been available for some time, but only to taxpayers who have already had their tax lives compromised. The law makes PINs available to anyone whose identity has been stolen, regardless of whether their tax accounts have been affected. Importantly, anyone can request a PIN now. 

Some more Refund protection 

The law will protect you if you requested a direct deposit of your tax refund, but did not receive the money. The IRS is now authorized to take steps to recover refunds that are passed on to the wrong taxpayer and to make sure that the right taxpayer gets the money. 

This has not always been the case. Historically, the hands of the IRS have been tied in this situation.

Collection of Taxes

The law also aids taxpayers with respect to collecting taxes they owe. The IRS can no longer involve private debt collection agencies to aid them in collecting low-income taxpayers or those whose income derives from disability insurance, although others do not share this protection. 

If you wish to pay what you owe, but need some extra time to arrive with the money, the law has extended IRS Installment agreements to seven years. Historically, taxpayers have had only five years to settle their tax debts using this option.

The penalty for missing files

The penalty for failure to file a tax return has been $205 or 100% of the tax due, whichever is less. It is certain that this $ 205 has been corrected for inflation, so it has dragged upwards from time to time. But the act really ramps it up for tax returns that are due anytime after December 31, 2019. It’s now $ 330.

These are just some of the changes

The First Act taxpayer comprises numerous pages in simple space for revisions to the tax code, most of them designed to create a new and improved IRS. It sets out some new guidelines and restrictions in place for the seizure of property, too, as well as whistleblower reforms. The United States Senate Committee on Finance makes provision for the entire Taxpayer First Act of 2019 for which is Voluntary Income Tax Assistance those interested in reading it.