Q: How can Iowans get help in dealing with a problem with the Internal Revenue Service, or IRS?

A: Iowans often come to me with problems they have dealing with federal agencies. As one of Iowa’s U.S. Senators, I work to make sure Iowans get a fair shake from the federal government. To try to help provide taxpayers with better service in dealing with problems at the IRS, Congress created the Taxpayer Advocate Service in 1998. The Taxpayer Advocate Service is an independent organization within the IRS whose employees are assigned to assist businesses or individuals who are experiencing economic harm, who are seeking help in resolving problems with the IRS, or who believe that an IRS system or procedure is not working as it should. The Taxpayer Advocate Service provides a free, confidential service designed to give taxpayers a voice at the IRS.

Q: What is the National Taxpayer Advocate’s “Annual Report to Congress?”

A: The Taxpayer Advocate Service is designated to work with taxpayers to identify and fix their problems, and it’s directed to figure out how to make sure the problems don’t happen again for other taxpayers. Each year, by law, the National Taxpayer Advocate presents the “Annual Report to Congress,” which proposes changes in administrative practices and identifies potential legislative changes to help mitigate systemic problems. The annual report describes at least 20 of the most serious problems facing individual and business taxpayers, reviews the ten most federally litigated tax issues, and outlines proposals to change laws to help ease the compliance burden on taxpayers.

Q: What problems did this year’s “Annual Report to Congress” identify?

A: This year’s “Annual Report to Congress” contained an extensive discussion of the IRS‘s role in administering social benefit programs. The Advocate says if the burden of administering new such programs is “excessive, it could impair the IRS’s ability to deliver on its core tax-collection mission.” The report goes on to say, “Implementing these provisions without adequate notice and resources will strain IRS systems and will likely lead the agency to divert resources from its core functions.” Administering health care reform, which the IRS would be required to do if legislation that’s been passed by Congress becomes law, will be the largest tax-based social benefit program the IRS and taxpayers have ever seen. As the Ranking Member of the Senate Finance Committee which handles tax issues, I’ve already been sounding the alarm for taxpayers, knowing the level of frustration they’ll face in dealing with the IRS. Unfortunately the White House and Democratic congressional leaders, have been turning a deaf ear. I asked the IRS Commissioner last fall for an assessment of the administrative impact and cost to the IRS of significant new agency responsibilities under health care reform. The response was lackadaisical, at best. This year, I hope the Advocate’s warning about the consequences of poor preparation get through to the administration before taxpayers suffer the consequences.

Q: How can Iowans contact the Taxpayer Advocate Service?

A: The Taxpayer Advocate Service has at least one local taxpayer advocate in every state, including the District of Columbia and Puerto Rico. Iowa’s taxpayer advocate is located in Des Moines and can be reached by dialing 515-564-6888. For more information about the Taxpayer Advocate Service, visit www.irs.gov/advocate.