LaHood bill would require improved IRS responsiveness to federal directives

U.S. Rep. Darin LaHood (R-IL) on March 20 introduced legislation that would give the Internal Revenue Service (IRS) a deadline for responding to federal directives citing the agency for needed improvements to better support American taxpayers.

Specifically, the Improving Assistance for Taxpayers Act, H.R. 5342, would give the IRS 30 days to provide detailed responses to Taxpayer Assistance Directives (TAD), which are issued by the Taxpayer Advocate Service (TAS), an independent office within the IRS.

TAS helps taxpayers resolve individual or universal tax cases with the IRS at no cost. When TAS identifies systemic problems within the IRS, it can issue a TAD that requires an IRS unit to improve operations or functional processes. A TAD is meant “to improve the operation of a functional process or to grant relief to groups of taxpayers (or all taxpayers) when implementation will protect the rights of taxpayers, prevent undue burden, ensure equitable treatment or provide an essential service to taxpayers,” according to TAS.

However, the IRS doesn’t always respond to TADs, or it sometimes responds with form letters, according to information provided by Rep. LaHood’s staff. “When the TAS issues directives to address systemic problems at the IRS, it deserves more than either a form letter or no response at all,” Rep. LaHood said.

If enacted, H.R. 5342 also would direct TAS to notify Congress when the IRS did not comply with the 30-day response requirement, a provision designed to further increase IRS transparency, according to Rep. LaHood’s staff.

“Dealing with the IRS can be frustrating, which is why our Taxpayer Advocate Service must have the tools it needs to get answers and results for taxpayers,” Rep. LaHood said. “Taxpayers expect government agencies to function with efficiency and transparency, and this bill will help bring about both at the IRS.”

H.R. 5342 has been referred to the U.S. House Ways and Means Committee for consideration.