Posted by Michelson Law Office

Taxpayer First Act 2019

Taxpayer First Act 2019

According to one critic, the first Taxpayer First Act of 2019, H.R. 1957 would prohibit the Internal Revenue Service (IRS) from organizing tax-free software training as part of a growth company such as TurboTax and H & R Block.

Taxpayers can be pleased that Congress approved and the President on July 1, 2019, signed the extension and consolidation of taxpayer rights, as well as the focus on computer security and the protection of taxpayer identity, as well as the increase in IRS funding in a separate account, brings a general theme to provide better services to taxpayers, indeed positive measures for taxpayers.

In a divided convention, it is to the credit of Chairmen Grassley (R-IA) of Finance and Neal (D-MA) of Means and Ways as well as ranking members  Congressman Brady (R-TX) and Senator Wyden (D-OR) and Subcommittee Chairman Lewis (D-GA) and Ranking Member Kelly (R-PA) that they were able to find mutual ground and compromise on this legislation that will provide meaningful benefit to taxpayers.

Main provisions of the new law:

Independent appeal procedure

The ability of taxpayers, particularly individuals and small businesses, to challenge the position of the IRS without having to bear the costs and expenses of the tribunal is essential. The key is that the features of the IRS are considered an independent store. In my store, we are doing very well for our clients by presenting IRS taxpayers with factual and taxpayer information.

The new law legally establishes that the IRS office is independent, which highlights congressional intent and taxpayer understanding. The law also provides that IRS resources may receive independent advice from the IRS Legal Department; the payer may have access to the appropriate files and establishes the taxpayer's right to claim if the right of appeal is denied.

These are right steps for Congress, but it is necessary to be vigilant on the IRS to ensure that the IRS does not play fast and with the ability of taxpayers to access IRS resources. I'm stunned at the cases I've seen in which the IRS is trying to deprive the taxpayer of the right to seize the IRS's appeal (like - oh, you have to fill this pink-shaped card with a red pen - calls sorry, and there is no soup for you: the IRS should think about how this denial of resource provision is handled (with the taxpayer's right to protest this refusal) .Try breaking up at meetings. These meetings require the taxpayer to submit his case to the IRS's independent head office instead of the IRS / consultants team to obtain another piece of apple.

This law amends the Internal Revenue Service (IRS) requirements concerning its organizational structure, customer service, compliance procedures, information technology management and use of electronic systems.

  • The project includes provisions
  • Establishment of the IRS Independent Resources Office to resolve uncontrolled tax litigation;
  • Ask the IRS to develop a comprehensive customer support strategy.
  • Continue with the free IRS file program;
  • Exempt some low-income earners from the necessary payments to make a commitment offer;
  • Modify tax enforcement procedures on issues such as asset seizures, quotes, joint liability, and postponement of private credit collection and third party contacts;
  • Establish requirements to comply with the taxpayer's instructions;
  • Enable a permanent equivalent grant program for tax assistance.
  • Modification of the procedures for the complainants;
  • Establish information security requirements and identify protection;
  • Prohibit re-employment of IRS employees who have been terminated because of discrepancies;
  • Authorize the IRS to require additional taxpayers to submit electronic statements; and
  • Increase the penalty for not returning.

The law requires the IRS to appoint an Information Manager, to change information technology management requirements and to authorize a streamlined payment authority for certain information technology-related positions.

The bill also requires the implementation of the IRS: 

  • An internet communication platform on form 1099,
  • A fully automated disclosure program that allows taxpayers to verify third-party income on the Internet;
  • Uniform rules and procedures for the acceptance of electronic signatures.
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