National Taxpayer Advocate's Annual Report to Congress Highlights Most Serious Problems Encountered by Taxpayers
By Joel N. Crouch on January 8, 2025
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Joel N. Crouch
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It is becoming an annual event for me to write about the National Taxpayer Advocate’s Annual Report to Congress and its top 10 list of the most serious problems encountered by taxpayers, see What Do the National Taxpayer Advocate and David Letterman Have In Common? and More Top 10 Tax Lists From the Taxpayer Advocate and David Letterman.
But before we get to the advocate’s most recent list, here are a couple of classic Top 10 Lists from Late Night With David Letterman: Top Ten Things Never Before Said By A "Star Wars" Character and Letterman's Final Top Ten List.
The National Taxpayer Advocate’s 2024 report was released on January 8, 2025, and with no further ado, here are the top 10 most serious problems encountered by taxpayers according to the National Taxpayer Advocate:
1. EMPLOYEE RETENTION CREDIT. IRS processing delays are resulting in uncertainty and harming and frustrating business owners.
2. RETURN PROCESSING. Continuing delays in IRS return processing are frustrating taxpayers and causing refund delays.
3. IDENTITY THEFT. Processing and refund delays are harming victims of tax-related identity theft.
4. IRS SERVICE. Taxpayer service is often not timely or adequate.
5. TAX-RELATED SCAMS. More taxpayers are falling victim to tax-related scams.
6. HIRING. The IRS’s continuing challenges in employee recruitment, hiring, training, and retention are hindering its ability to achieve transformational change in taxpayer service and tax administration.
7. INDIVIDUAL TAXPAYER IDENTIFICATION NUMBER PROCESSING. IRS dependence on paper forms and manual document review is causing delays, mistakes, and potential security risks.
8. TAX AND FINANCIAL LITERACY. Limited tax and financial knowledge are causing serious consequences for taxpayers.
9. CIVIL PENALTY ADMINISTRATION. The IRS’s administration of penalties is often unfair, inconsistently deterring improper behavior, not promoting efficient administration, and thus discouraging tax compliance.
10. CRIMINAL VOLUNTARY DISCLOSURE. Changes to the IRS’s criminal voluntary disclosure practice requirements may be reducing voluntary compliance and negatively impacting the tax gap.
The report also says the IRS has made strides in improving customer service and technology but requires sustained funding to build on those improvements. The Advocate urged Congress to protect the Inflation Reduction Act funds earmarked for taxpayer services and IRS business systems modernization. The report called the funding central to the IRS’s ongoing service improvements including an increase in calls answered during the filing season.
Those interested in reading the full report can find it HERE.
If you have any questions regarding this or any other tax issue, please feel free to contact me a 214-749-2456.
But before we get to the advocate’s most recent list, here are a couple of classic Top 10 Lists from Late Night With David Letterman: Top Ten Things Never Before Said By A "Star Wars" Character and Letterman's Final Top Ten List.
The National Taxpayer Advocate’s 2024 report was released on January 8, 2025, and with no further ado, here are the top 10 most serious problems encountered by taxpayers according to the National Taxpayer Advocate:
1. EMPLOYEE RETENTION CREDIT. IRS processing delays are resulting in uncertainty and harming and frustrating business owners.
2. RETURN PROCESSING. Continuing delays in IRS return processing are frustrating taxpayers and causing refund delays.
3. IDENTITY THEFT. Processing and refund delays are harming victims of tax-related identity theft.
4. IRS SERVICE. Taxpayer service is often not timely or adequate.
5. TAX-RELATED SCAMS. More taxpayers are falling victim to tax-related scams.
6. HIRING. The IRS’s continuing challenges in employee recruitment, hiring, training, and retention are hindering its ability to achieve transformational change in taxpayer service and tax administration.
7. INDIVIDUAL TAXPAYER IDENTIFICATION NUMBER PROCESSING. IRS dependence on paper forms and manual document review is causing delays, mistakes, and potential security risks.
8. TAX AND FINANCIAL LITERACY. Limited tax and financial knowledge are causing serious consequences for taxpayers.
9. CIVIL PENALTY ADMINISTRATION. The IRS’s administration of penalties is often unfair, inconsistently deterring improper behavior, not promoting efficient administration, and thus discouraging tax compliance.
10. CRIMINAL VOLUNTARY DISCLOSURE. Changes to the IRS’s criminal voluntary disclosure practice requirements may be reducing voluntary compliance and negatively impacting the tax gap.
The report also says the IRS has made strides in improving customer service and technology but requires sustained funding to build on those improvements. The Advocate urged Congress to protect the Inflation Reduction Act funds earmarked for taxpayer services and IRS business systems modernization. The report called the funding central to the IRS’s ongoing service improvements including an increase in calls answered during the filing season.
Those interested in reading the full report can find it HERE.
If you have any questions regarding this or any other tax issue, please feel free to contact me a 214-749-2456.
