Legislative update: Senate Finance Committee approves bipartisan tax administration reform package

The Senate Finance Committee today approved, on a bipartisan basis, the “Taxpayer Assistance and Service Act,” as modified by the Committee.

Read a section-by-section summary of the chairman’s mark of the legislation.

As described in a Finance Committee release when the legislation was introduced, the legislation “combines legislative proposals recommended by the National Taxpayer Advocate with standalone tax administration bills introduced by congressional members designed 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.”

Among other things, the legislation 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
• Protect victims of fraud from indefinite IRS scrutiny

The Committee rejected (by a vote of 14-13) a motion to amend the legislation to add provisions of the “Presidential Tax Accountability and Audit Integrity Act.”

Read the hearing notice for additional information on the various modifications made to the legislation.