New Rules in the IRS
The recently signed “Taxpayer First Act” will benefit anyone dealing with the IRS in several ways. The upgrades outlined in the bill will modernize the agency, as well as improve operations in communication and collections, which will be outlined in this article.
The main category to discuss is communication. The IRS can be a troubling agency to deal with, as taxes can be confusing, and no one wants to deal with a collection agency. With the new bill, communication should become much clearer. This will happen through directly communicating why a claim is rejected, upgrading the efficiency of IRS infrastructure, making it easier to report identity theft, and informing of common scams rather than using hold music. These changes will make the tax paying process more transparent and less intimidating.
The second category of changes is in collection practices. These changes include accepting direct payments for filing, rather than using a third-party, raising the bar for what necessitates a seizure of property, and reducing the use of “middlemen”, such as collection agencies and third-party contacts. These changes should reduce the targeting of some taxpayers, allowing them to avoid improper payment and correct mistakes without fear of seizure.
These improvements should be in effect currently or soon, as some things will take time to implement. Overall, these changes should benefit everyone, and will hopefully make the taxpaying process simpler. Though the IRS could be further improved, this bill is a step in the right direction.