The Internal Revenue Service (IRS) would receive a major overhaul if bipartisan legislation introduced late last month gets signed into law. On February 26, Senate Finance Committee Chairman Mike Crapo (R-ID) and Ranking Member Ron Wyden (D-OR) introduced the Taxpayer Assistance and Service Act (S. 3931), which would make significant changes to IRS administration and procedures. The legislators say the 162-page bill encompasses proposals recommended by the National Taxpayer Advocate, as well as stand-alone tax administration bills previously introduced by their colleagues. The Senate Finance Committee has primary jurisdiction over the IRS in the U.S. Senate. The goal of the bill is “to improve communication between the IRS and taxpayers, streamline processes for tax compliance and ensure taxpayers have access to timely expert assistance, among other much-needed reforms,” according to a joint press release from the Senators.

“The process of filing your tax return and receiving your refund should be simple and fast,” Sen. Crapo said in a statement. “These reforms will improve the taxpayer experience and help the IRS better serve Idahoans and all Americans.”

Sen. Wyden concurred, saying this legislation has been in the works for years. He called it a “major opportunity” for improved IRS service. “One of the most absurd things about our tax system is that its complexity forces millions of Americans to turn to paid tax return preparers ever year, but there are zero minimum standards in place to ensure those paid preparers actually know what they’re doing or follow the law,” Wyden said. “Crooked tax return preparers are regularly exploiting taxpayers to pad their own bottom lines, and the worst part is, taxpayers might not even realize they’ve been ripped off until it’s too late.”

The Taxpayer Assistance and Service Act would:

• Digitize more tax returns to support faster refunds;
• Upgrade the “where’s my refund” tools so taxpayers know when to expect their refunds and what to do if they are delayed;
• Upgrade IRS online accounts so taxpayers and their representatives can review their returns and correspondence and respond to the IRS online;
• Protect taxpayers by strengthening standards for paid tax preparers;
• Expand IRS call-back options so taxpayers can request a return call more often and from more IRS phone numbers;
• Allow the U.S. Tax Court to hear cases relating to refunds;
• Increase the independence of the National Taxpayer Advocate and the IRS Independent Office of Appeals; and
• Protect victims of fraud from indefinite IRS scrutiny.

National Taxpayer Advocate Erin Collins expressed gratitude for Crapo and Wyden and spoke favorably about the bill, calling it “broad and sweeping legislation that would strengthen taxpayer rights, reduce taxpayer burden, and improve tax administration.”

“This bill incorporates dozens of common-sense proposals to make tax administration fairer, more transparent, and more responsive to taxpayers,” Collins wrote.

To view the full text of the bill, click here.

For a 23-page section-by-section summary of the bill, click here.