U.S. Sens. Chuck Grassley (R-IA) and John Thune (R-SD) teamed up on Tuesday to reintroduce a bill that would provide new protections for taxpayers, reinforce existing safeguards and make the IRS more customer friendly.
“The IRS has never been anyone’s favorite agency,” Grassley said. “It has a long way to come back from scandals and declining customer service. Taxpayers shouldn’t be at a disadvantage with an agency that has tremendous power over their money.”
The Taxpayer Bill of Rights Enhancement Act of 2017, S. 1793, would modernize and supplement a previous taxpayer bill of rights measure that the senators led. Provisions of the earlier bill were enacted into law in December 2015, guaranteeing taxpayers’ right to privacy and ability to challenge the position of the IRS and be heard, among others.
S. 1793 would step-up civil damages for improper disclosure of taxpayer information and improper collection activities, and it would restore taxpayers’ rights to bring a cause of action against the IRS for unauthorized collections.
“Taxpayers have wrongfully suffered under the IRS for too long, and it’s time to restore some integrity back into this agency,” Thune said. “Our bill addresses these problems by strengthening taxpayer protections, which would allow Americans to rest easy, knowing they will get fair treatment when dealing with the IRS.”
Taxpayers would have more time to petition the IRS for the return of proceeds from property sales that were incorrectly levied under the bill. Taxpayers would also receive breaks for enrolling in automated installment plans for debt repayment. Raising the penalty threshold for underpayment of estimated taxes would bring additional penalty relief.
The legislation would also take steps to eliminate red tape that can prevent taxpayers from settling tax debt through an offer-in-compromise, ensure low-income and elderly taxpayers have continued access to free tax preparation services, and require tax-exempt entities to file Form 990 electronically.
“The IRS has to answer taxpayers’ questions, protect their privacy and help people meet their tax obligations with fairness and respect,” Grassley said.