Taxpayer Advocate Releases 2017 Annual Report to Congress

Here a just a few of the common sense proposals included in the more than 1,000 pages of the report.

Strengthen Taxpayer Protections in the Filing of Federal Tax Liens

Codify the Rule That Taxpayers Can Request Equitable Relief Under Internal Revenue Code Section 6015(f) Any Time Before Expiration of the Period of Limitations on Collection

Authorize the IRS to Release Levies That Cause Economic Hardship for Business Taxpayers

Extend the Time Limit for Taxpayers to Sue for Damages for Improper Collection Actions

Protect Retirement Funds from IRS Levies in the Absence of “Flagrant Conduct” by a Taxpayer

Toll the Time Periods for Requesting the Return of Levy Proceeds While the Taxpayer or a Pertinent Third Party is Financially Disabled

Require the IRS to Waive User Fees for Taxpayers Who Enter into Low-Cost Installment Agreements and Evaluate the Potential Revenue and Compliance Costs of Future User Fee Increases

Hold Taxpayers Harmless When the IRS Returns Funds Levied from a Retirement Plan or Account

Modify the Requirement That the Office of Chief Counsel Review Certain Offers-in-Compromise

Continue to Limit the IRS’s Use of “Math Error Authority” to Clear-Cut Categories Specified by Statute

Amend IRC § 7524 to Require the IRS to Mail Notices at Least Quarterly to Taxpayers with Delinquent Tax Liabilities

Provide Additional Time for Taxpayers Outside the United States to Request Abatement of a Math Error Assessment Equal to the Time Extension Allowed in Responding to a Notice of Deficiency

Improve Offer in Compromise Program Accessibility by Repealing the Partial Payment Requirement

Amend IRC § 7403 to Provide Taxpayer Protections Before Lien Foreclosure Suits on Principal Residences

Amend IRC §§ 6320 and 6330 to Provide Collection Due Process Rights to Third Parties Holding Legal Title to Property Subject to IRS Collection Actions

Clarify that Taxpayers May Raise Innocent Spouse Relief as a Defense in Collection Proceedings and in Bankruptcy Cases

Convert the Estimated Tax Penalty into an Interest Provision for Individuals, Trusts, and Estates

Apply One Interest Rate Per Estimated Tax Underpayment Period for Individuals, Estates, and Trusts

Reduce the Federal Tax Deposit Penalty Imposed on Certain Taxpayers Who Make Timely Tax Deposits

Authorize a Penalty for Tax Return Preparers Who Engage in Fraud or Misconduct By Altering a Taxpayer’s Tax Return

Require Written Managerial Approval Before Assessing the Accuracy-Related Penalty for “Negligence”

Compensate Taxpayers for “No Change” National Research Program Audits and Waive Assessment of Tax, Interest, and Penalties Resulting from Such Audits

Require That At Least One Appeals Officer and One Settlement Officer Be Located and Permanently Available in Each State, the District of Columbia, and Puerto Rico

Require Taxpayers’ Consent Before Allowing IRS Counsel or Compliance Personnel to Participate in Appeals Conferences